Ethereum Hits 3-Year Low Against Bitcoin: Will the FOMC Meeting Provide a Market Lifeline?

Ethereum holders are facing significant pressure as the ETH/BTC value recently plummeted below 0.04, marking a three and a half-year low. The pair currently sits at 0.03916, with a 24-hour low of 0.03870, indicating a notable price rejection not witnessed since April 2021.

James Fickel, a prominent Ethereum supporter, has sold 5,600 ETH, valued at $13.30 million, to mitigate liquidation risks. Fickel maintains 153,868 stETH and has borrowed 1,896 WBTC, boasting a health factor of 2.56.

The downward trend in the ETH/BTC pair appears set to persist, with the next support level at 0.033662. However, Benjamin Cowen, in a recent tweet, suggests a support zone between 0.03-0.04, anticipating a reversal and an upward trend in 2025. Cowen predicts the bear run to reach its bottom either this week or by December, drawing parallels to historical price movements in 2016 and 2019.

The upcoming FOMC meeting presents a potential shift in momentum for the crypto markets, with expectations of a bullish rally driven by a rate cut. Quinten Francois, in a tweet, points to Bitcoin’s potential uptrend, citing previous price movements and interest rate scenarios that led to significant price surges.

The FEDWatch tool on the CME page indicates growing expectations of a 475-500 basis point rate cut, with potential implications for Bitcoin’s future price predictions. CryptoBullet notes a recurring breakdown and accumulation phase in the monthly ETH/BTC chart, aligning with historical patterns observed by Benjamin Cowen.

Looking ahead, Crypto Bullet targets 0.08850 and 0.1100 as potential levels for recovery in 2025. Despite recent market downturns, historical trends suggest a possible turnaround, especially with the anticipation of a rate cut during the September FOMC meeting.