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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Sep 18, 2024 11:26 UTC
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Ethereum News Today: Will Fed Rate Cuts Trigger a ETH Price Rally?
Michael van de Poppe believes that lower interest rates by the Federal Reserve could lead to a surge in decentralized finance (DeFi) activity.
Despite the potential for a DeFi boom, van de Poppe remains cautious about Ethereum's short-term price.
Ethereum's position as the foundation of many DeFi projects makes it a significant player in the potential DeFi surge.
As the Federal Reserve gears up for potential rate cuts, crypto analyst Michael van de Poppe is keeping a close eye on Ethereum. While he doesn’t believe today marks the bottom for ETH, he’s excited about what could unfold in the decentralized finance (DeFi) space once the Fed begins to lower rates.
What does this mean for Ethereum’s price and its role in DeFi? Let’s dive in.
How Rate Cuts Could Benefit DeFi
According to Michael van de Poppe, if the Fed reduces interest rates, it could ignite a significant boost for decentralized finance (DeFi) platforms, especially Ethereum. With ETH serving as the backbone of many DeFi projects, lower rates could bring more liquidity into the ecosystem, potentially pushing ETH prices higher in the long run.
However, van de Poppe isn’t convinced that the current market marks the bottom for Ethereum. “The chart looks awful now,” he says, pointing out that Ethereum’s price struggles could continue in the short term.
Ethereum has been crucial to the development of DeFi, with many projects built on its network. As the Federal Reserve changes its monetary policy, cheaper borrowing could indirectly help DeFi protocols and, in turn, benefit Ethereum.
Ethereum Price Analysis
On the daily chart, Ethereum has been declining steadily since it was rejected at its yearly high of $4,000. The price has been making lower highs and lower lows, reflecting a generally bearish market mood.
Recently, Ethereum faced resistance at $2,250, leading to another drop. The 50-day moving average for ETH funding rates has also been on a downward trend, hitting its lowest level in 2024.
Currently, Ethereum is trading within a key range, with support at $2,000 and resistance around $2,500. Until the price breaks out of this range, more sideways movement is expected.
Also Check Out: Ethereum-to-Bitcoin Ratio Reaches Three-Year Low: What to Expect from ETH Price Next?
Do you believe Ethereum is poised for a major comeback, or will its downward trend continue? Let us know your thoughts.
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