Ethereum Hits $4,500: Rate Cuts Could Spark Crypto Rally!

Ethereum Hits $4,500: Rate Cuts Could Spark Crypto Rally!

On Friday, October 4, 2025, the price of Ethereum (ETH) rose to the $4,500 level and reached a two-week high of $4,580. This bullish momentum was triggered by the delay in the release of September's Nonfarm Payrolls (NFP) data, which was originally scheduled for that day. Loud FXStreet The postponement of the NFP dates was a direct result of the partial shutdown of the US government due to funding gaps.

The uncertainty created by this delay could force the Federal Reserve (Fed) to cut interest rates. These potential interest rate cuts are crucial for the crypto market as they could encourage investors to invest in risky assets. Coinbase researchers have already found that markets are pricing in an 87% chance of two rate cuts of 25 basis points each by the end of the year.

Market dynamics and liquidations

Rising expectations of interest rate cuts, combined with new highs for gold, could reduce competition for cash returns on risky assets. This would benefit the crypto market. In the last four days, US spot ETH ETFs recorded over $1 billion in net inflows. At the same time, the amount of ETH available on centralized exchanges fell to new lows while large investors, also known as “whales,” increased their buying pressure.

Despite these positive developments, market sentiment remains cautious. ETH derivatives data shows that funding rates are relatively subdued and a 1M 25D put-call options skew is present. There was also $123.8 million in futures liquidations in the last 24 hours, with $73 million in short liquidations.

Technical analysis and future outlook

Technically, Ethereum could face resistance at a descending trend line that has existed since August 24th. A break above this resistance could take ETH towards $4,800. On the downside, ETH may find support around the $4,100 level, with the 100-day Simple Moving Average (SMA) acting as key support.

Additionally, the Relative Strength Index (RSI) shows that the value is above the neutral level, while the Stochastic Oscillator (Stoch) is in the overbought territory. These indicators suggest dominant bullish momentum, however the overbought conditions in stock could also lead to a short-term correction.

Overall, the current market for Ethereum is characterized by an exciting phase in which both technical and fundamental factors work together to influence price movements. Investors should monitor developments closely, particularly in light of upcoming Federal Reserve decisions and the market's reaction thereto.