🔥🔥🔥 Ethereum could rally 17% amid #Bitwise thesis on $ETH contrarian bet
Ethereum Gains Amid Fed Rate Cut Anticipation
Ethereum rose 2% to $2,320 on Tuesday, driven by anticipation of a 50-basis-point rate cut by the U.S. Federal Reserve. Bitwise’s Chief Investment Officer, Matt Hougan, noted that Ethereum remains a contrarian bet with potential upside, despite underperforming compared to Bitcoin and Solana.
Ethereum Still Dominates Key Metrics
Hougan emphasized that while concerns about Ethereum persist, such as its regulatory status, competition from Solana, and declining Layer 1 fees, it still leads in multiple areas:
- 50% of #stablecoin supply
- 60% of DeFi total value locked (TVL)
- Strong developer ecosystem and adoption by major firms like #BlackRock and Nike
Ethereum may see a market reevaluation later this year as regulatory clarity improves, presenting an opportunity for investors.
Potential 17% Rally if Key Resistance Is Broken
Ethereum is attempting to break above $2,395, a critical resistance level. If it sustains a high-volume move above this level, it could rally 17% toward $2,817. Failure to break through could lead to a decline toward $2,200. Key resistance levels include the 50-day, 100-day, and 200-day SMAs. A daily close below $2,111 would invalidate the bullish outlook.
In the short term, ETH may dip to $2,288 to clear liquidations of around $40.34 million.
Source - fxstreet.com
