Ethereum Hits $3,400 High After Fed Rate Cut

Ethereum surged past $3,300 on Wednesday, reaching a three-week high near $3,400, as the Federal Reserve's anticipated quarter-point interest rate cut bolstered investor confidence in risk assets. The rally, which marked a roughly 6 percent gain in the past 24 hours, positioned Ethereum to outperform Bitcoin, with the ETH/BTC ratio climbing to its highest level since late October.

The Federal Reserve's decision to lower rates by 25 basis points aligned with market expectations, removing a key source of uncertainty for 2025. Officials indicated a path of gradual easing through 2026, projecting rates to settle lower amid resilient economic growth and persistent but manageable inflation. This environment favors high-duration assets like Ethereum, which has shown sensitivity to improved liquidity conditions. Bitcoin held steady above $92,000, but Ethereum preserved pre-meeting gains, reflecting a rotation of capital within the cryptocurrency sector.

Institutional interest underpinned the upswing. Data from Santiment showed that large holders, often referred to as whales and sharks, accumulated nearly 1 million ETH, valued at over $3.1 billion, in the three weeks leading up to the...