Ethereum Price Surges 11.7% Amidst Record High Futures Volume and US Interest Rate Cuts

On September 21, COINOTAG reported that Ethereum surged by 11.7% between September 17 and September 19, soaring to a three-week peak of $2,572. This uptrend is linked to a notable spike in the open interest volume of Ethereum futures, climbing to a 20-month high. Such an increase in leverage has raised trader concerns about potential amplified price swings. While lower interest rates support ETH’s upward trajectory, the US economy’s vulnerabilities persist. The recent spike in ETH prices reflects the broader 8.3% rise in the cryptocurrency market, buoyed by reduced US interest rates and robust labor market indicators. This positive momentum also propelled the S&P 500 to an all-time high on September 19. Lower interest rates alleviate the expense for companies issuing new bonds, thereby reducing fears of a potential market correction.