Ethereum price eyes a bullish turnaround in September as 25% BPS interest spikes to 75% probability. The crypto participants seem to be preparing for this recovery as a substantial amount of ETH exits the derivative market, and Whale shows an accumulation trend.
Ethereum Price Bullish Ahead of 25 BPS Fed Rate Cut
According to the CME Fed tool, the probability of a 25-basis-point (BPS) interest rate cut in September has surged to 75%, compared to a 25% chance for a 50-BPS cut. Typically, interest rate cuts stimulate capital flow as banks find it easy to borrow and support their operations. This event often encourages investment in the stock market and riskier assets like cryptocurrencies.
Thus, the market leaders’ Bitcoin shows a bullish outlook with an attempt to reverse the August correction, while the Ethereum price projects similar growth potential.
CME Fed tool
40K ETH Exodus from Exchanges; Will Ethereum Price Rebound?
Last weekend, the ETH price rebounded from $2150 support, which uplifted ETH 7.5% to trade at $2313 currently. This reversal from multi-month support also projected a bullish RSI divergence with August 5th, accentuating the increasing demand pressure.
If buying pressure persists, the altcoin price could develop a bullish reversal pattern called a double bottom and chase the initiation target of $2800. A potential breakout from this neckline resistance will intensify the demand pressure and extend the Ethereum price prediction target to $3500.
ETH/USD -1d Chart
Supporting the bullish thesis, a substantial withdrawal of over 40,000 ETH from derivative exchanges signals a potential reduction in selling pressure. The data highlighted by Cryptoquant shows that large amounts of Ether are removed from exchanges, typically indicating HODL behavior from investors.
Negative netflow exceeding 40,000 $ETH on derivative exchanges
“Indicates that more ETH is being withdrawn from Derivative Exchanges, which might suggest reduced selling pressure.” – By @3AMRTAHA_
Full post https://t.co/5v0PWwq9Mw pic.twitter.com/MrE4zRNQro
— CryptoQuant.com (@cryptoquant_com) September 9, 2024
The lookonchain data tracker further confirmed this accumulation sentiment as a whale bought 5,000 ETH (worth around $11.46M) in the last two days.
A smart whale bought 5,000 $ETH($11.46M) at the bottom again in the past 2 days!
The whale bought 5,200 $ETH at an average price of $1,322 in November 2022.
Then sold it at an average price of $2,093 in January, December 2023, and January 2024, making more than $4M!… pic.twitter.com/yTKB12dU4i
— Lookonchain (@lookonchain) September 9, 2024
The aforementioned data signals an optimistic future for the Ethereum price and a potential rebound in the near term.
On the contrary note, a suspected Ethereum foundation address sold 450 ETH for approximately $1.0364 million DAI via the Cow Protocol, according to Arkham intelligence. While such a sale could initially trigger a concern of insiders selling, the funds were immediately transferred to another Ethereum foundation address, suggesting a potential fund reallocation as part of treasury management.
However, if the bearish momentum mounts, the Ethereum price will plunge 12% to seek support at the long-coming support trendline at $2000.
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