Ethereum Soars Past $4,477 as September Rate Cut Probability Hits Record 85% High

Ethereum rockets back above key psychological level as monetary policy shifts fuel crypto rally.

The Fuel Behind the Surge

Traders pile into digital assets as traditional finance braces for unprecedented monetary easing—because nothing says 'healthy economy' like betting on rate cuts hitting all-time highs.

Defiance Against Conventional Markets

ETH's rebound showcases crypto's growing decoupling from legacy financial systems, attracting capital seeking refuge from manipulated traditional markets.

Smart money's already positioning—while Wall Street still debates whether digital assets are a legitimate hedge.

Ethereum (ETH) price jumped over 4% on Wednesday to reach a range high of about $4,481. The large-cap altcoin, with a fully diluted valuation of about $540 billion, led the wider altcoin market in a mild rebound during the mid-North American session.

As a result of today’s ethereum price pump, the Altcoin Season Index from CoinGlass jumped to the highest level year-to-date of about 63%. Meanwhile, the ETH/BTC pair has gradually rebounded to signal the onset of 2025 altseason.

Ethereum Price Gains on Rising Odds for Fed Rate Cuts in September 

The ETH price has significantly benefited from the rising odds of a Fed rate cut on September 17. Furthermore, expected Fed rate cuts in the coming months will increase the demand for risky perceived assets, led by altcoins.

According to data from Polymarket, the odds of a 25 bps Fed rate cut on September 17 surged to 86%, the highest level since the beginning of 2025. Polymarket traders are predicting a 10% chance that the Fed will leave its benchmark interest rate unchanged this month.

According to market data from Kalshi, the odds of a 25bps Fed rate cut in September surged to a new all-time high of 85% today. Kalshi traders are predicting a 10% chance that the Federal Reserve will leave its benchmark interest rate unchanged later this month.

The upcoming Fed rate decision is expected to be a major turning point for the crypto bull market. Meanwhile, Federal Reserve Governor Christopher J. Waller said on Wednesday during an interview that multiple interest rate cuts over the next 3–6 months are possible.

Cautionary Tale

Crypto analyst Benjamin Cowen has predicted that Ethereum price will drop below $4k in the coming days before rebounding to a new all-time high soon. 

Translation:

Ethereum is going to drop to the 21W EMA and then go to new all time highs https://t.co/VEs4BYsPnQ pic.twitter.com/NZdOiDBplK

However, the midterm bearish sentiment will be invalidated if the altcoin consistently closes above $5k in the coming weeks.