ETH prices- Ethereum’s fast recovery hints at a potential 100% rally for ETH prices

ETH prices- The swift rebound in Ethereum suggests ETH prices could double

ETH prices– Ethereum’s native token, Ether, is experiencing a significant rebound after hitting an eight-month low on August 5. This sharp recovery mirrors the rebound seen in October 2023, which was followed by a remarkable 168% price increase.

Has ETH Price Already Bottomed?

As of August 6, the ETH/USD pair is showing signs of a bullish reversal. The recent bounce has come from a support zone that includes the lower trendline of its prevailing ascending channel pattern and the 200-week exponential moving average (200-week EMA).

Additionally, Ether’s weekly relative strength index (RSI) has risen from 39.40, climbing just over nine points above the oversold threshold. This technical setup resembles the conditions seen in October 2023, which, along with supportive fundamentals like the pre-halving rally and the launch of Bitcoin ETFs, contributed to a strong price rally towards the ascending channel’s upper trendline.

If this pattern repeats, Ether may have already hit its low on August 5, around $2,128, and could be on track to reach the upper trendline of the ascending channel, projected around $4,560. This would represent a potential rally of over 100% by 2024, based on current price levels.

Rate Cuts May Boost Ethereum’s Upside

From a fundamental perspective, expected rate cuts by the United States Federal Reserve could drive up demand for Ether. As traders seek higher returns from riskier assets and shift away from lower-yielding options like government bonds, Ether could benefit.

Bond traders anticipate that the rapidly deteriorating US economy might force the Fed to cut interest rates aggressively before their next meeting to avoid a recession. With concerns about high inflation diminishing, the focus has shifted to fears of economic slowdown.

Traders are now estimating a 60% chance of an emergency 0.25% rate cut within the next week, according to Bloomberg. Moreover, CME data indicates an increasing likelihood of three rate cuts by 2024. This scenario is reminiscent of March 2020, when the market saw a sharp rebound following the Fed’s intervention in response to the COVID-19 market crash.

For the latest in crypto updates, keep tabs on Crypto Data Space.