According to BlockBeats, on September 21, the price of Ethereum soared 11.7% between September 17 and September 19 to a three-week high of $2,572. This price trend coincided with the increase in the open interest of Ethereum futures, which jumped to a 20-month high. As a result, traders began to worry that increased leverage could amplify potential price fluctuations.
Lower interest rates are good for ETH’s bullish momentum, but risks remain for the U.S. economy. The recent rise in ETH prices echoes an 8.3% gain in the overall cryptocurrency market, which has benefited from U.S. rate cuts and strong labor market data. The momentum also pushed the S&P 500 to a record high on September 19. Lower interest rates make it less expensive for companies to issue new debt, easing concerns about a possible correction in the stock market.
