- Ether’s price climbed to $3,400 following Donald Trump’s pro-crypto speech at the Bitcoin 2024 conference.
- Trump’s endorsement and potential US regulatory changes boost broader cryptocurrency market sentiment.
- Anticipation of Federal Reserve rate cuts contributes to Ether’s rise, with focus on upcoming policy announcement.
Ether saw a notable increase in its market value following a series of favorable developments, including a significant endorsement from former President Donald Trump.
In a recent address at the Bitcoin 2024 conference held in Nashville, Trump proposed the creation of a national strategic Bitcoin reserve, suggesting the U.S. hold onto all Bitcoin currently owned or acquired in the future. This move, coupled with subsequent legislative efforts led by Senator Cynthia Lummis, has sparked optimism regarding a more crypto-friendly regulatory environment in the U.S. Such developments have had a direct positive impact on major cryptocurrencies, including Ether, which saw a 3.5% increase in its price shortly after Trump’s speech.
Economic Factors at Play
The anticipation surrounding the Federal Reserve’s upcoming policy announcement also plays a critical role in the cryptocurrency market dynamics. With the Fed’s meeting scheduled for July 31, investors are keenly awaiting Chair Jerome Powell’s remarks, which might hint at potential interest-rate cuts in September. Recent indicators from the labor market and inflation metrics suggest that lower borrowing costs could be justified, further enhancing the appeal of riskier assets like cryptocurrencies.
Technical and Market Trends
The technical analysis of Ether’s price movement shows a recovery from key support levels, including a 200-day exponential moving average and a critical Fibonacci retracement line. Additionally, Ethereum futures have exhibited increasing funding rates, reaching levels not seen since June, while open interest in these futures has slightly decreased. This combination typically indicates a growing bullish sentiment among traders, suggesting that further gains for Ether could be on the horizon.
