Ethereum’s rebound has set the tone for the week ahead, and the longer term trend will depend on two key levels.
ETHUSD – Daily Chart
ETH now has a defined set of levels for its future path ahead. The recent support from $3,800 to $ 4,075 will now serve as an important floor for buyers. The all-time high just below 5,000 will be the important high.
A significant recovery rally in bitcoin saw the token rise 12.6% over the last seven days, while Ethereum gained 13.92%.
Bitcoin’s surge actually reached a new all-time high, boosting BlackRock’s IBIT ETF, which recently entered the top 20 U.S. funds by assets under management, with $90 billion. Analysts believe that IBIT’s rapid ascent could be the fastest in ETF history, which is a boost for further digital asset funds.
Cryptos were boosted by the recent Federal Reserve decision to implement a 0.25% interest rate cut, the first since December 2024. There are now expectations for more cuts, with data from the CME exchange showing a 96% probability of another reduction in October and an 86% chance of one in December. That is a bullish expectation for further cuts.
Meanwhile, analysts at JPMorgan have increased their price target on BTC to $165,000 by year-end. The bank’s analysts believe that BTC will continue to rise in value alongside gold due to the U.S. dollar’s “debasement trade.” That is the belief that Washington’s debt will cause the USD to lose favour as the largest world currency.
Ethereum institutional investment has been boosted with BlackRock and Fidelity committing around $212 million into ETH. This move signals growing belief that Ethereum’s role in the financial system could be substantial.
