The cryptocurrency market, led by major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), surged to levels not seen in over a month on Tuesday in anticipation of the Federal Reserve’s (Fed) imminent announcement of its first interest rate cut since the COVID-19 pandemic.

However, despite these expectations and whatever impact the Fed’s announcement may have on the market, in bitcoin halving years the fourth quarter (Q4) is typically significantly bullish for the two largest digital assets and the broader market.

Ethereum Price Performance Study After Bitcoin Halving

Interestingly, Ethereum’s behavior following the recent Bitcoin halvings showed significant fluctuations. Data reveals that in the year following the 2016 Halving, Ethereum saw a 45% drop in value before experiencing a significant rally that ended with a 3,400% boost.

Similarly, after the 2020 Halving, ETH rose 150% and then surged to 2150%. However, since the last Halving in April, ETH has mirrored Bitcoin variabilityencountering significant price swings and setting lower support levels.

The past month has not been kind to Ethereum, marked by two significant crashes. On August 5, ETH regressed by over 25%, falling to a six-month low of $2,110. The downtrend continued into September, with increased selling pressure leading to a drop from $2,800 to around $2,150 in just one week.

Despite these challenges, the CryptoBullet analyst remains confident about the possibility of a turnaround in Q4. It is worth noting that the analyst Identified A “triple bottom” formation on the ETH/USDT daily chart is evident in the chart below, reminiscent of the price movement seen in 2021.

This pattern suggests that Ethereum may be poised for a rebound similar to what happened in 2021, when it rose from around $1,650 to the highest level of all time $4,730. However, Ethereum is currently trading at around $2,330, which is more than 52% below its previous all-time high.

ETH Price Analysis

Anticipating further volatility in ETH prices on Wednesday ahead of the upcoming Fed rate cut, key levels monitor. Last week, ETH established the $2,260 level as a major support level. This price point is crucial as it could act as a buffer against a further decline towards $2,200 or even a retest of the next major support at $2,100.

On the other hand, the 50-day exponential moving average (EMA) is currently set at $2,350, acting as a formidable barrier for Ethereum. This resistance level has prevented the cryptocurrency from retesting the $2,400 level in the near future.

If ETH manages to break through these resistance levels, bullish investors will turn their eyes to the next huge resistance at $2,520. Just above this level is another critical obstacle at $2,620, where the 200-day EMA is located. This level has not been breached since July of this year, when Ethereum price fell below it, initiating the current downtrend.

Featured image from DALL-E, chart from TradingView.com