Ethereum (ETH) price jumped 4% on Wednesday to a high of around $4,481, marking a notable movement in the cryptocurrency market. This rise came amidst expectations of Fed rate cuts.
Brief Recovery in Altcoin Prices
The Ethereum price increase led to the Altcoin Season Index from CoinGlass reaching its highest level this year at about 63%. The ETH/BTC pair has also gradually rebounded, signaling the onset of the 2025 altcoin season.
Impact of Fed Decisions on Crypto Market
The rising odds for a rate cut by the Fed on September 17 greatly influenced crypto prices. According to Polymarket, the likelihood of a 25 basis point cut surged to 86%. Traders also predict a 10% chance that the rate will remain unchanged.
Analyst Predictions for Ethereum Price
Crypto analyst Benjamin Cowen has predicted that the price of Ethereum will drop below $4,000 in the coming days before rebounding to a new all-time high. He noted that midterm bearish sentiment will be invalidated if the altcoin consistently closes above $5,000 in the coming weeks.
The cryptocurrency market remains volatile, and upcoming Fed decisions may significantly influence the price movements of Ethereum and other altcoins.
