Crypto Analyst Predicts Potential ETH/BTC Slide If Fed Cuts Rates in September

  • The Ethereum versus Bitcoin (ETH/BTC) pair is under scrutiny as analysts review historical price actions.
  • Notably, past market cycles, especially from 2016, are being analyzed to predict potential movements in 2023.
  • One crypto strategist suggests that rate cuts by the Federal Reserve in September could influence ETH/BTC significantly.

Analyzing the ETH/BTC Pair Amid Potential Fed Rate Cuts

Historical Patterns and Their Implications for ETH/BTC

In a detailed analysis, a well-regarded crypto analyst has turned to the price patterns from 2016 to understand the potential future trajectory of the ETH/BTC pair. The analyst notes that significant movements often follow patterns seen in past cycles, providing a basis for future predictions.

Expected Resistance and Support Levels

According to the analysis, ETH/BTC could experience a rally to its current resistance level of 0.056 BTC in August. However, the pair’s support level at 0.045 BTC may be tested again in September if the Federal Reserve announces a rate cut. This movement parallels a similar trend observed in the 2016 cycle, where support and resistance levels played a crucial role in price determination.

Potential for Capitulation and Long-Term Gains

The analyst further suggests that a rate cut in September could lead to a significant decline, reminiscent of the 2016 capitulation. This potential downturn could push ETH/BTC to cycle lows, setting the stage for possible substantial gains in the long term, as witnessed previously when the pair rose from low levels in late 2016 to reach new heights in the following year.

Conclusion

The analysis indicates that ETH/BTC’s immediate future might be turbulent, influenced by macroeconomic factors such as Federal Reserve rate cuts. Investors should closely monitor these developments and consider historical patterns when making investment decisions. While short-term volatility is anticipated, the long-term outlook based on past cycles remains optimistic for the ETH/BTC pair.

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