Ethereum is predicted to fall by $ 1000

Analysts are predicting a significant drop in the price of Ethereum (ETH) following the expected interest rate cuts by the US Federal Reserve. After several large institutions, including Metalpha, sold off a significant portion of their ETH holdings, the cryptocurrency could drop to $ 1,200 by the end of the year.

Over the past four days, Metalpha has sold more than 33 thousand ETH, which has had a significant impact on the market. Ethereum is currently worth $ 2,330, but the pressure on the asset is expected to increase, which could lead to its further decline.

Experts warn that this decline is similar to the fall of ETH in 2019, when the market also experienced a significant decline after the first rate cut. Analyst Benjamin Cowen believes that similar market conditions could lead to a price drop to $ 1200 if current trends continue. The large activity of «whales» (large investors) also indicates a further outflow of assets from the ETH market, which creates additional pressure.

Against the backdrop of these events, crypto traders are closely monitoring macroeconomic changes and their impact on the cryptocurrency market. Economist Peter Schiff has warned that rate cuts will not save the US economy from a possible recession, and inflation may rise. This creates risks for investors who invest in crypto assets.

Nevertheless, some experts suggest that Ethereum may recover in 2025 after the market stabilizes. Investors are advised to be cautious about forecasts and weigh their decisions carefully, as the market remains very volatile.