- Ethereum’s rally, fueled by the Pectra upgrade and ETF inflows, could spark a SHIB breakout.
- SHIB’s ERC-20 status and historical ties to Vitalik Buterin mean ETH’s moves often influence its price.
- Macro factors like potential Fed rate cuts could fuel inflows, but seasonal and global risks remain.
Shiba Inu (SHIB) has long been one of the most notable ERC-20 tokens on Ethereum, and with ETH making a strong move higher in recent weeks, the spotlight might be shifting toward SHIB again. Ethereum’s price has been riding momentum from the Pectra upgrade and consistent inflows into ETH-based ETFs, with both factors pushing the network into bullish territory. That strength could spill over into SHIB, sparking its own rally.
Why Ethereum’s Rally Matters for SHIB
Although SHIB launched its own layer-2 network—Shibarium—in 2023, it’s still an ERC-20 token at its core, meaning Ethereum’s performance heavily influences it. The recent climb in ETH has also lifted other Ethereum-based tokens, with SHIB logging its own gains in the process.
The two assets share more than just a technical connection. In SHIB’s early days, the team famously sent half its supply to Ethereum co-founder Vitalik Buterin. He burned 90% of it and donated the rest to charity—an event that triggered one of SHIB’s biggest historical price spikes.
Macro Tailwinds and Investor Appetite
Part of Ethereum’s current rally may be tied to softer-than-expected Consumer Price Index (CPI) numbers, which could encourage the Federal Reserve to consider an interest rate cut. Cheaper borrowing costs often push investors toward riskier bets—like SHIB. And as a memecoin, SHIB can see big swings when speculative capital flows in.
Still, there are caveats. September has often been a historically weak month for crypto. Even with a rate cut, broader market headwinds—like ongoing trade disputes—could lead to choppy price action and consolidation rather than a clean breakout.
The Road Ahead
For SHIB holders, Ethereum’s strength is a promising signal, but it’s not a guarantee. If ETH continues to climb, the spillover effect could give SHIB a strong boost, especially if sentiment in altcoins improves. But global conditions and seasonal trends could still temper those gains.
