Ethereum isn’t exactly having the time of its life. While Bitcoin is busy smashing new all-time highs—recently peaking near $109,000—and even its direct rival Solana is enjoying a strong performance, Ethereum seems to be stuck in slow motion when it comes to returns. The second-largest cryptocurrency is once again under heavy fire from critics.

Stock Market Signals More Pain for Ethereum

According to analyst Cowen, the U.S. S&P 500 might hold the key to Ethereum’s next move. If the leading U.S. index continues to slide, Ethereum could follow suit.

“What I’m wondering,” Cowen says, “is what happens if the S&P 500 continues to show weakness through mid-April? We already predicted a downturn in February and March caused by options expirations. That played out, but I also said it could extend into April.”

The potential culprits? Uncertainty surrounding Donald Trump’s import tariffs, and the looming avalanche of macroeconomic data set to hit in April.

“And why will the market be watching closely? Because it all comes down to inflation—these developments could significantly impact it,” Cowen adds.

Ethereum Could Sink to $1,044

In a worst-case scenario, Cowen warns that Ethereum could plummet to $1,044, especially as recession fears intensify. From there, it would need to claw its way back to the $3,000 support level.

“Looking at the ETH/USD chart, I see a triple top. And I ask myself, how much of this is a foreshadowing of a recession?” Cowen notes. He believes the market is already pricing in a slowdown—which explains a big chunk of the current malaise.

Relief Might Be Around the Corner

Despite the gloom, Cowen sees light at the end of the tunnel. The worst may already be behind us, and Ethereum could be gearing up for a recovery phase. He points to Bitcoin as an encouraging sign.

BTC recently hit a local low of $76,700 before bouncing back to $83,000, and even touched nearly $88,000—right before Trump’s tariff bombshell dropped and dragged the market back down.

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James Frost

I trade cryptocurrencies based on fundamentals, TA and indicators. It started as a hobby, then part time and currently full time for more than 2 years. This kind of trading and analysis is endless daily work. This means throwing all previous analyzes in the trash and starting day-to-day again. My previous experiences: CryptoSvet.cz