Ethereum (ETH) has recently been affected by global economic fluctuations, showing a short-term adjustment trend. However, several factors indicate that September may become an important turning point for ETH.
First, the expectation of interest rate cuts by the Federal Reserve has become a focal point in the market. Current data shows a very high possibility of a 25 basis point rate cut in September, which may create a favorable environment for digital assets like ETH.
Historical data also provides positive signals for ETH's trend. Although August is usually a month of high volatility, in bull market years, ETH often performs well. Current technical analysis supports a medium-term upward trend as well.
The clarification of stablecoin regulation is another noteworthy factor. New legislation requires stablecoins to be backed by dollar assets, which not only standardizes the market but also indirectly supports mainstream digital currencies like ETH.
The behavior of institutional investors also conveys positive signals. Several well-known institutions continue to increase their holdings in ETH, and the amount of ETH staked on the Ethereum 2.0 beacon chain has now exceeded 36 million, indicating that long-term capital is actively positioning itself.
On-chain data analysis shows that, despite some large holders selling off, overall large transactions and position changes suggest that institutions are accumulating at lower levels. At the same time, an increase in short liquidations and a decrease in inflows to exchanges also indicate that the market may soon welcome a rebound.
In summary, the current market adjustment may provide new entry opportunities for investors. In the long term, expectations of interest rate cuts, the clarification of stablecoin regulatory frameworks, and continued accumulation by institutions collectively form a solid foundation for ETH's rise.
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