Fed Rate Cut Looms: Ethereum and Cardano Set to Explode?

Markets brace for impact as Fed signals dovish pivot—crypto's moment has arrived.

Ethereum: The Institutional Darling

Smart contract giant ETH positions itself as the prime beneficiary of monetary easing. Expect liquidity flows to turbocharge DeFi activity and institutional adoption.

Cardano's Research-Driven Edge

ADA's peer-reviewed approach stands to gain from risk-on sentiment. Its methodical development cycle suddenly looks prescient as capital seeks fundamentally sound assets.

Traditional finance scrambles to keep up—watching from the sidelines as digital assets rewrite the rules of monetary policy impact. Because when the Fed cuts, crypto doesn't wait for permission to rally.

The crypto market is preparing for what could be a very volatile week, with all eyes on the Federal Reserve’s upcoming interest rate decision. This is expected to have a major impact on risk assets, including cryptocurrencies. Analysts are now breaking down the charts, identifying the most crucial levels to watch. 

Analyst Dan Gambardello  in his latest video shifts from the weekly view into the daily chart to map out key support and target levels for ethereum and Cardano. 

Ethereum: Key Support and Targets

Currently, Ethereum is testing two crucial support zones: the area around the 20- and 50-day moving averages, and a possible throwback to the apex of its multi-year triangle. If ETH holds support near $4,200, upside targets could stretch toward $5,700–$5,800. But if ETH loses this level, the downside  target sits around $3,600–$3,700.

Investor Ted Pillows notes that Ethereum has failed to reclaim the $4,700 level and has started pulling back. The key to watch now is the $4,500 support zone. If it holds, ETH could rebound toward $4,700–$4,800, but if it breaks, downside pressure may drag ETH into the $4,000–$4,200 range.

Cardano: Frustrating, Yet Bullish Signs

Coming to ADA, the analyst notes that while many traders feel frustrated by ADA’s slow sideways action, the chart actually shows bullish signs. Momentum indicators like the RSI and MACD are trending in a way very similar to the last cycle before ADA broke out. 

If bullish momentum kicks in, ADA could first target $1.05–$1.06, and possibly as high as $1.50. To the downside, his target sits around $0.64.

Analyst Ali Martinez also shared that Cardano appears to be mirroring its last cycle’s pattern, a sign that the bull rally may still be in its early stages.

Cardano $ADA looks to be repeating its last cycle’s pattern. If so, the bull rally is still in its early stages! pic.twitter.com/kpcUMQo2Zv

Altseason Signals

Ted also cautions that the Altseason Index may be giving a false signal. While it suggests Altseason has begun, the fear and greed index shows no euphoria. This mismatch points to possible manipulation through sudden pumps followed by retracements. He warns traders not to mistake these pump-and-dump moves for a true Altseason, or they risk getting liquidated.