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ETH price drops 6% amid rate cut fears and FUD

GrafaGrafa2024/09/16 07:25
By:Isaac Francis

Ether (CRYPTO:ETH) fell 6% within the last 24 hours, dropping from $2,425 on September 15 to a low of $2,260 on September 16, amid growing market uncertainty. 

The decline briefly pushed ETH below $2,200, levels not seen since January. 

The broader cryptocurrency market also saw a downturn of 4.5%, bringing the total market capitalisation down to $2.12 trillion, with ETH suffering a significant hit.

The decline in ETH is linked to a wave of fear, uncertainty, and doubt (FUD) on social media platform X, with even some analysts joining in. 

Ethereum developer ‘antiprosynthesis’ noted, “Half of my feed is ETH FUD at this point,” reflecting the negative sentiment surrounding the cryptocurrency. 

Crypto analysts like James Check and “KALEO” added to the bearish sentiment with memes on the price drop and its decline relative to Bitcoin (BTC). 

The ETH/BTC ratio has now fallen to its lowest since April 2021, hitting 0.038 on September 16.

The price drop coincides with a week of significant events in the U.S., as the Federal Reserve is set to announce a potential rate cut on September 18. 

According to the CME Fed Watch tool, there is a 41% chance of a 25 basis point cut and a 59% chance of a 50 basis point cut. 

Analysts from Bitfinex earlier predicted that an expected rate cut by the U.S. central bank could lead to a dip in the crypto market.

Adding to the market jitters, former U.S. President Donald Trump survived an alleged assassination attempt on September 15. 

Although Trump was unharmed and a suspect was apprehended, the incident's impact on the ETH market remains unclear. 

Following a similar incident in July, crypto prices experienced a brief spike, making it uncertain how markets will react this time.

At the time of reporting, the Ethereum (ETH) price was $2,293.86.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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