"Ethereum Surpasses $4,700... Anticipation of September Rate Cut and Risks Coexist"

The price of Ethereum (ETH) surpassed $4,700, approaching its highest point since 2021. Some analysts have warned that expectations for a rate cut by the U.S. central bank, the Fed, have been overly priced in.

According to cryptocurrency-focused media outlet Cointelegraph on the 14th (local time), Pav Hundal, chief analyst at Swyftx, said, "The current ETH price rally is based on the premise of a Fed rate cut in September," adding, "If the Fed makes a decision contrary to market expectations, significant correction could occur."

According to the Chicago Mercantile Exchange (CME) FedWatch Tool on the same day, the market has priced in a 95.8% probability of a rate cut in September.

Hundal stated, "Thanks to ETF inflows and stable funding rates, ETH is 'perfectly' priced," adding, "It is especially important to be cautious at such times." On the 12th, the net inflow to the spot Ethereum ETF reached an all-time high of $1.01 billion, strengthening the upward momentum.

Charles Edwards, founder of Capriole Investments and REF, stated, "If Bitcoin reaches $150,000 to $200,000, Ethereum’s price could double within months," but also warned, "If the rate cut is delayed, inflation rebounds, or geopolitical risks arise, there is a high possibility of contraction."

Meanwhile, there are also skeptical views about the likelihood of a rate cut in September. Jeff Schmid, president of the Federal Reserve Bank of Kansas City, stated, "The current rate is appropriate for the time being," drawing the line on any loosening signal. Ellen Zentner of Morgan Stanley Wealth Management also said, "If the Fed decides it needs to temper market expectations, it will act directly."