Crypto analyst Michael van de Poppe believes that if the Federal Reserve reduces interest rates, it could benefit decentralized finance (DeFi) platforms, particularly Ethereum. Lower rates could bring more liquidity into the DeFi ecosystem and potentially drive up ETH prices in the long term. However, van de Poppe does not think that the current market represents the bottom for Ethereum, as the chart looks bearish. The adjustment in the Federal Reserve's monetary policy could indirectly benefit DeFi protocols by making borrowing cheaper. Currently, Ethereum is trading within a crucial range with support at $2,000 and resistance at $2,500, suggesting that further sideways movement is expected until a breakout occurs.
- Content Editor ( coinpedia.org )
- 2024-09-18
Ethereum’s Future in DeFi: What Will Happen After the Fed’s Rate Cut?