Ethereum (ETH) has undoubtedly been the most notable crypto asset of recent years. The rally is now at over $4,700, approaching its highest level since 2021.
Analysts say the reason behind Ethereum’s recent rise is the growing expectations that the Fed will make its first interest rate cut of the year in September.
However, one analyst warned investors about the ETH rallies.
SWYFTX chief analyst Pav Hundal warned that Ethereum investors are overly optimistic about US interest rate cuts, but that optimism could already be priced and reduced.
“The current surge in Ethereum prices is based on the assumption that the Fed will cut interest rates in September.
If the Fed makes a decision against market expectations, there could be a significant revision. ”
Charles Edwards, founder of Capriole Investments, said he was extremely optimistic about Ethereum.
At this point, analysts argued that if Bitcoin reaches $150,000-$200,000, the price of Ethereum could double in a few months.
However, analysts point out that if the Fed does not turn the corner and cut interest rates against expectations, liquidity could be tightened, capital flows halted, and prices could be negatively affected.
However, analysts expect bull markets to continue as long as institutional demand for Ethereum exceeds supply, and believe there is no other option than bullish gatherings.
*This is not investment advice.
