“Ethereum (ETH) witnessed a 17% and 3% price surge following the two most recent Federal Reserve meetings on June 14th and July 25th, 2023. Now, on-chain analysis delves into how Ethereum’s price might respond to the impending Federal Reserve Rate announcement slated for September.”
“Fluctuations in Ethereum’s Price!”
“The price of the Ethereum smart contract platform surged by 17% between June 14th and June 21st, 2023, reaching $1,900. This significant price increase followed the Federal Reserve’s decision to maintain the interest rates at 5.25%, marking the 10th consecutive hike since March 2022. However, on July 25th, 2023, the Fed increased interest rates by 0.25%. Although the hikes were slightly below expectations, Ethereum (ETH) saw a moderate price uptick of 3% by month-end.
Economists surveyed by Reuters anticipate that the US Fed will maintain the fund rates at 5.50% in the upcoming Federal Open Market Committee (FOMC) meeting scheduled for September 19th, 2023. Notably, Ethereum recently witnessed a 7% decline over the past three trading days. On-chain analysis suggests that this could be an indicator of forthcoming events following the next Fed meeting. As the date of the next Fed meeting rapidly approaches, a crucial on-chain indicator reveals that US institutional investors have begun to intensify their buying pressure.”
Will ETH Recover?
“Furthermore, on September 13th, the Coinbase Premium Index reached 0.27, marking its first appearance at this level for the month. CryptoQuant’s Coinbase Premium Index measures the percentage difference between spot prices on Coinbase Pro and Binance exchanges. Binance holds a dominant position in the global individual spot market, while Coinbase Pro is primarily favored by US-based institutional entities and high-net-worth investors.
The positive values observed in the Coinbase Premium Index may suggest an uptick in buying activity from US-based investors on Coinbase. Notably, the last time the Coinbase Premium Index exceeded the 0.30 range was approximately on July 13th, coinciding with a subsequent price surge to $1,925. It remains to be seen whether the Ethereum (ETH) Coinbase Premium Index will continue its ascent as it has done recently.”