Ether (ETH), the cryptocurrency known for its yield-bearing properties, could see a significant price surge following an anticipated interest-rate cut by the U.S. Federal Reserve. Currently priced at $2,800, ether has gained only 23% this year, in stark contrast to bitcoin's 77% increase, which puts ether well below its 2021 peak of $4,868. Analysts suggest that the Fed's expected cut of 25 basis points could narrow the yield differential in favor of ether, enhancing its appeal as an alternative to traditional bonds. This shift could revitalize demand for ether, especially in a post-election environment where a pro-crypto candidate, Donald Trump, has emerged victorious. The market is keenly observing how the Fed will react, particularly regarding inflationary policies linked to Trump, which could affect the pace of future rate cuts. If ether successfully breaks above the downtrend established since May, it may rally past the $3,000 mark, signaling renewed investor interest.

Source 🔗