On September 21, the price of Ethereum surged 11.7% between September 17 and September 19 to a three-week high of $2,572. This price action coincided with a rise in Ethereum futures open interest, which jumped to a 20-month high. As a result, traders began to worry that increased leverage could amplify potential price volatility.
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.
