Will Ethereum Break $2,500 After Fed’s Cut?


Ethereum’s Current Status



  • Ethereum price today is trading at around $2,330.
  • Recent Trends: The cryptocurrency has shown signs of recovery after recent volatility.
  • Pattern Insight: Analysts, including CryptoBullet, have identified a "triple bottom" formation on the ETH/USDT daily chart. This pattern, similar to what was seen in 2021, could signal a potential rebound.

Federal Reserve’s Interest Rate Decision



  • Upcoming Decision: The market is eagerly awaiting the Federal Reserve’s interest rate decision.
  • Current Prediction: There’s a 65% chance of a 50 basis point (BPS) rate cut.
  • Historical Context: Typically, the Fed starts with a 25 BPS cut. However, during major crises like the dot-com crash in 2001 and the Great Financial Crisis in 2007, the Fed took more drastic measures. In both cases, CPI was under 3%, and unemployment was over 4%.
  • Impact on Crypto: If the Fed chooses a larger rate cut, it could boost the crypto market. On the other hand, delaying economic relief might lead to a recession by early 2024, potentially affecting Ethereum’s price.

Google Cloud’s New Blockchain RPC Service



  • Launch Date: Google Cloud introduced its Blockchain Remote Procedure Call (RPC) service on September 17, 2024.
  • Features: The service supports the Ethereum mainnet and testnet. It includes a free tier with up to 100 call requests per second and one million requests per day.
  • Compatibility: It supports EIP-1474 and is fully compatible with Ethereum’s JSON-RPC standard, making it easy for developers to integrate into their DApps with minimal code changes.
  • Benefits: This new service aims to improve the reliability and efficiency of decentralized applications on Ethereum, addressing RPC reliability issues during high network activity.

What to Watch for Next

  • Ethereum’s Potential: The integration of Google Cloud’s RPC service and the Federal Reserve’s upcoming decision could significantly influence Ethereum’s price.
  • Bullish Signs: If the Fed acts to alleviate recession risks through rate cuts, Ethereum might break through resistance levels and enter a new bullish phase.
  • Market Risks: Conversely, if the Fed delays necessary economic measures, Ethereum and the broader crypto market could face increased volatility and potential downturns.

In summary, Ethereum’s future performance will depend on key factors like the Federal Reserve’s interest rate decision and the impact of Google Cloud’s new RPC service. Keep an eye on these developments as they could shape Ethereum’s next market moves.

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