Ether’s price went up after, among other things, Donald Trump’s massive support for cryptocurrencies at the Bitcoin 2024 meeting in Nashville.
Ether (ETH), Ethereum’s native token, started strongly in the new week. This was due to a risk-on attitude that followed Donald Trump’s strong support for cryptocurrencies at the Bitcoin 2024 conference in Nashville and before the Federal Reserve meeting.
On July 29, two days after Trump spoke to the Bitcoin community in the US, the price of ether went up by 3.5% and was getting close to $3,400. For political reasons, Trump talked about making a national Bitcoin reserve.
The US government would keep all of its Bitcoin here, whether it has it now or gets it later. Also, Wyoming Republican Senator Cynthia Lummis put forward a bill that would let the US Treasury buy one million Bitcoins over five years.
Trump’s policies that support crypto and the possibility of better regulations in the U.S. have made it more likely that more people will use crypto. After his speech, Johnny Ng, a Hong Kong Legislative Council member, said that the government would look into adding Bitcoin to the region’s money stocks.
Because of these positive factors, Bitcoin and the rest of the crypto market went up on July 27. When significant cryptocurrencies like Bitcoin get good news, they usually help the whole market, including Ether.
Ether Surges On Fed Rate Cut Anticipation
The price of ether went up today before the Federal Reserve made its policy decision and Chair Jerome Powell spoke on July 31. These events could support a September interest rate cut. The Fed’s benchmark rate is currently between 5.25% and 5.5%. Recently, officials have discussed a balanced job market and falling inflation as reasons for lower borrowing costs.
A number of experts, such as economist Mohamed El-Erian and former New York Fed President William Dudley, call for faster rate cuts and warn of possible policy mistakes if rates stay too high.
It’s now 87.7% likely that rates will go down in September, up from 57.9% a month ago. So, the returns on short-term and long-term US Treasury notes have decreased over the last few weeks. This puts money into “riskier” investments that don’t pay interest, like Bitcoin and Ether.
The price of Ether went up today at the same time that the funding rates for Ethereum futures went up to levels not seen since June. After going as low as 0.014% per week at the beginning of the month, Ether funding rates shot up to 0.26% per week on July 29.
On the other hand, open interest dropped from its monthly high of $15.22 billion to $13.97 billion on July 29. When the funding rate goes up, and open interest goes down, it usually means that short positions are being closed.
This means that traders are becoming more positive, as shown by the fact that long traders are paying short traders to keep their positions open, which leads to higher funding rates. This mix often comes before a price move that goes up.
From a technical point of view, Ether’s price rise is part of a rebound that began at a support point made up of the 200-day exponential moving average (EMA), a 0.236 Fibonacci retracement line, and the lower trendline of its current downward channel pattern.
ETH’s price is now getting close to the upper trendline of the range, which is around $3,460. And this is also where the 0.5 Fib line is. If the price stays above the channel, it should go to the following Fib line: around $3,600.
