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<p>Although the Ethereum (ETH) price has bounced back above $2,350 levels, market analysts believe that ETH is not completely out of the woods. Historical chart patterns for the ETH price show that the upcoming Fed rate cuts could be a nightmare for the altcoins.</p> 
<h2 class="wp-block-heading" id="h-ethereum-price-can-drop-to-1-200-following-fed-rate-cuts"><strong>Ethereum Price Can Drop to $1,200 Following Fed Rate Cuts</strong></h2> 
<p>Crypto analyst Benjamin Cowen recently stated that the current wedge pattern of the Ethereum (ETH) price is very similar compared to the lows of the 2019 wedge. Back in 2019, ETH fell back to its wedge before the first rate cut, resembling a similar pattern to the present cycle in 2024.</p> 
<p>Following the first rate cut in 2019, ETH dropped below its wedge, and ETH/BTC eventually reached a bottom. Cowen predicts that ETH could drop to $1,200 by December, based on historical patterns. The ETH/BTC pair broke down in 2016 and 2019, leading to a 70% decline in ETH/USD to a risk level of 0.300.</p> 
<p>Taking the current risk levels into consideration, this shows the Ethereum price drop to continue to the $1,208 level. Cowen anticipates a potential soft landing for ETH, with a possible rebound in the first half of 2025. Cowen cautions investors that they should take their own decisions and that he could be wrong too.</p> 
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 <img loading="lazy" decoding="async" width="1024" height="611" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-1024x611.jpeg" alt="Ethereum/USD 1 Week | Source: Trading View " class="wp-image-708328" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-1024x611.jpeg 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-300x179.jpeg 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-768x458.jpeg 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-1536x916.jpeg 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-2048x1221.jpeg 2048w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-150x89.jpeg 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-696x415.jpeg 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-1068x637.jpeg 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/09/Ethereum20Price20Wedge20Pattern-1920x1145.jpeg 1920w" sizes="(max-width: 1024px) 100vw, 1024px">
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  Ethereum/USD 1 Week | Source: Trading View 
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<h2 class="wp-block-heading" id="h-top-institutions-continue-selling-eth"><strong>Top Institutions Continue Selling ETH</strong></h2> 
<p>The Ethereum whale activity has shot up recently with top players like the&nbsp;<a href="https://www.thecoinrepublic.com/2024/09/09/ethereum-foundation-vitalik-buterins-sell-spree-to-sink-eth-price/">Ethereum Foundation and Vitalik Buterin</a>reducing their ETH holdings in the past few weeks.</p> 
<p>Furthermore, as per the recent on-chain data Hong Kong-based asset manager Metalpha has sold nearly&nbsp;<a href="https://www.thecoinrepublic.com/2024/09/07/metalpha-deposits-another-millions-worth-ethereum-to-binance/">40% of its ETH holdings</a>&nbsp;in the past four days. Earlier today, the Bitmain-affiliated asset manager sold 10,000 ETH worth $23.5 million. In the last four days, Metalpha has sent a total of 33,589 ETH, worth around $77.55 million, to crypto exchange Binance, as shared by blockchain analytics firm Lookonchain.</p> 
<p>Despite selling this massive quantity in a short time, Metalpha still holds 51,300 ETH, worth approximately $120 million, in the company’s treasury. If the asset manager maintains its current selling rate, it could deplete its Ethereum holdings by the end of this week.</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Metalpha deposited 10,000 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>($23.45M) again 15 mins ago.<a href="https://twitter.com/hashtag/Metalpha?src=hash&amp;ref_src=twsrc%5Etfw">#Metalpha</a> has deposited a total of 33,589 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>($77.55M) to <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw">#Binance</a> in the past 4 days and currently holds 51.3K <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>($120M).<a href="https://t.co/fTHHLpCEfr">https://t.co/fTHHLpCEfr</a> <a href="https://t.co/SAJYTaSPp0">pic.twitter.com/SAJYTaSPp0</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1833334908951138557?ref_src=twsrc%5Etfw">September 10, 2024</a>
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  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
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<p>These substantial deposits have attracted the attention of the crypto community with these large transactions holding the power to influence the ETH price.</p> 
<p>Currently, the ETH price is showing 2% gains in the last 24 hours shooting past $2,350 levels. The broader crypto market has been closely watching the macro developments and the upcoming Fed rate cuts in the next week.</p> 
<p>Popular economist Peter Schiff stated: </p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p>“The Fed rate cuts won’t prevent a recession. In fact, the U.S. economy has likely been in a recession for some time, though it hasn’t been officially confirmed yet. While short-term rates may fall, long-term rates and inflation will rise, along with unemployment. Game over”.</p> 
</blockquote> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/09/10/ethereum-eth-price-to-drop-to-1200-after-fed-rate-cuts-as-institutions-sell/">Ethereum (ETH) Price to Drop to $1,200 After Fed Rate Cuts As Institutions Sell</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Ethereum (ETH) Price to Drop to $1,200 After Fed Rate Cuts As Institutions Sell

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