Ethereum Predicted to Hit $3,500 Amid Interest Rate Cuts and ETF Interest
Ethereum could reach $3500, but only under this condition
Investors are optimistic about the medium-term prospects of Ethereum, but profit-oriented traders could break the momentum. An analyst predicted a rise in ETH to $2,600 and further to $3,500. Holders could gain 7.73% if they sell their holdings at the current price.
Ethereum’s impressive start to December
December began in an exciting way for Ethereum [ETH]. Over the weekend, the second largest digital asset by market capitalization rose almost 10%, extending the momentum it had gained in the last month. At the time of writing, ETH was trading at $2,248.11, an increase of 3.91% in the last 24 hours, according to CoinMarketCap.
Expectations of interest rate cuts drive the upswing
Ryan Lee, Chief Analyst at Bitget Research, attributed the recent upswing to strong expectations of interest rate cuts by the Federal Reserve in 2024. He said: “Given the possibility of a recession in the US economy, fund managers predict an 80% consensus for a trend towards an interest rate cut in 2024, which represents the highest consensus ever recorded. The crypto market has already priced in these positive news.”
Enthusiasm around Ether ETFs
Adding to this is the fact that enthusiasm around exchange-traded funds (ETFs) is at a peak. The number of Ether ETF applications filed with the US Securities and Exchange Commission (SEC) rose to seven in November.
High expectations for ETH
It was only natural that investors were optimistic about ETH. In a post on X (formerly Twitter) on December 3, crypto technical analyst Ali Martinez predicted that ETH could rise to $3,500, provided the weekly candle closes at $2,150. In addition, he emphasized the relevance of the $1,900-$2,100 range in one of his other posts. Previously, as many as 5.85 million addresses bought 43.8 million ETH in this range, indicating a likely increase in purchases in the coming days.
Will profit-taking interrupt the flow?
On the other hand, momentum could be slowed if traders decide to realize profits. According to an analysis by AMBCrypto of Glassnode’s NUPL metric, all holders would profit if they sold their assets at the time of writing.
Realistic or not, here is ETH’s market capitalization in BTC terms
AMBCrypto went even further with Santiment’s MVRV ratio. It turned out that all holders would gain 7.73% if they sold their holdings at the current price. It will be interesting to see whether holders let ETH rise or make some money after a challenging bear market.
Sources: CoinMarketCap, Bitget Research, Securities and Exchange Commission, Twitter, Glassnode, Santiment
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