Exploring Ethereum’s Performance Post-Bitcoin Halving
The cryptocurrency market, led by Bitcoin and Ethereum, surged in anticipation of the Federal Reserve’s imminent announcement of its first interest rate cut since the COVID-19 pandemic. Despite these expectations, Q4 is usually bullish for Bitcoin and Ethereum during Halving years.
Historically, Ethereum’s performance post-Bitcoin Halving has shown variations. After the 2016 Halving, Ethereum experienced a 45% drawdown before rallying by 3,400%. Similarly, after the 2020 Halving, ETH surged by 150% before a 2,150% gain. Since the latest Halving in April, Ethereum has mirrored Bitcoin’s volatility.
However, recent months have been challenging for Ethereum, marked by significant crashes. Analysts remain optimistic about Q4, with a “triple bottom” formation on the ETH/USDT daily chart suggesting a potential rebound.
Currently trading at around $2,330, Ethereum sits 52% below its all-time high of $4,730 reached in 2021.
ETH Price Analysis
With the upcoming Fed rate cut, ETH is expected to experience further price volatility. Key levels to watch include $2,260 as a crucial support level and the 50-day EMA at $2,350 acting as resistance.
If ETH breaks above these resistance levels, the next major resistance lies at $2,520, followed by a critical hurdle at $2,620 where the 200-day EMA is situated.
Featured image from DALL-E, chart from TradingView.com