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Ethereum Rally Risks from Overpriced Fed-Cut Expectations

I see Ethereum's recent rally as largely driven by expectations of a US Fed rate cut rather than fresh fundamental demand. When markets have already priced in a policy shift, downside risk grows if the Fed surprises by not cutting.

I remain cautious: institutional demand could sustain the rally, but liquidity could dry up quickly if rate-cut hopes fade. I'll monitor macro cues and on-chain flows rather than chase the move.

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Analysis

Prices appear driven by anticipated Fed easing; this creates heightened tail risk if the Fed delays or cancels cuts. Strong institutional demand could mitigate downside, but liquidity tightening would...

Recommendation

Watch ETH exposure closely and avoid initiating full positions now. Prefer waiting for clearer Fed signals or consider buying on weakness rather than buying into expectation-driven strength.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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