Ether investors seem to be pricing in “perfection” — but what if inflation increases or a major war breaks out?
Ether’s recent rally to over $4,700 is being largely propped up by expectations of a US federal rate cut in September, which could prove disastrous if it doesn’t eventuate, crypto analysts warn.
“The main issue right now is that the whole market move is based on an assumption that the Fed will give the market a rate cut next month,” Swyftx lead analyst Pav Hundal told Cointelegraph on Thursday, as Ether (ETH) continues to trade at only 2.80% below its 2021 all-time high, according to CoinMarketCap data.
Market participants are expecting a 95.8% chance the Fed will cut rates in September, according to the CME Watch Tool.
