The post Ethereum News Today: Can FED Interest Rate Cuts Trigger a ETH Price Rally? appeared first on Coinpedia Fintech News
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.
Rate Cuts Could Trigger a DeFi Boom
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 long been central to the growth of DeFi, with countless projects building on its network. As the Federal Reserve adjusts its monetary policy, this could make borrowing cheaper, indirectly benefiting DeFi protocols.
Ethereum Price Analysis
On the daily chart, Ethereum has been in a steady downtrend since being rejected at its yearly high of $4,000. The price has been forming lower highs and lower lows, which shows the overall bearish mood in the market.
Recently, Ethereum’s price hit resistance at the middle of this downtrend channel around $2,250, causing another drop. The 50-day moving average for ETH funding rates has also been in a consistent downtrend, hitting its lowest point in 2024.
At the moment, Ethereum is trading in a crucial range, with support at $2,000 and resistance near $2,500. Until the price breaks out of this range, more sideways movement is expected.