The altcoin king made significant gains today, rising almost 12% to test the $3,400 threshold. This was anticipated due to prolonged closings above $3,050, and testing $4,000 in the next few weeks wouldn’t be surprising either. Now, what’s the latest for Ethereum (ETH) 
$2,332, and what’s the buzz around Powell’s potential resignation? Let’s quickly delve into the details.
Powell’s Departure Could Shake Cryptos
When a potential new leadership is expected to lower interest rates, why should cryptos decline? Cryptocurrencies and U.S. stock markets tend to move in sync. Speculations regarding Federal Reserve Chairman Jerome Powell’s future have caused a surge in cryptocurrencies while sparking temporary turbulence in the U.S. markets.
Later, Trump clarified that he has no plans to remove Powell, deeming the situation just conceptual, leading to market stabilization. Despite rumors from a White House official stating “Trump will soon remove Powell,” the President dismissed such claims. As usual with Trump, it’s more about his actions than his words.
Contrary to Trump’s approach, many market experts disagree. For instance, tariffs are deemed inflationary, and compounded with the latest tax law, they could further inflate U.S. debt. A similar scenario is expected if Powell is removed. Trump seems unfazed, possibly showing how serious he thinks the situation is, but experts fear it could unsettle global markets.
Should Powell be ousted, faith in the Fed’s independence may deplete. The credibility of a politically pressured central bank falls, as economic entities without a neutral stance aren’t taken seriously. Notably, neither markets nor money have allegiance; even in America, national currency can depreciate, affecting the entire globe due to the dollar’s global reserve currency status.
Perhaps Trump’s audacity stems from a strategy to devalue the dollar for trade advantages, hence his bold proclamations. Double-digit tariffs, rumors about Powell’s removal, or allegations of misconduct are just a few headlines making the rounds.
Ethereum’s Forward Momentum
Powell’s potential removal could bring negative consequences for cryptocurrencies. Recently, a similar scenario saw BTC drop alongside the stock market. Although cryptos show strength now, particularly amidst today’s positivity, such strong momentum may not endure long-term.
Imagine a world where BTC remains the singular sanctuary of financial trust as the Fed’s credibility wanes, empowering cryptocurrencies despite negative mainstream financial trends.
Ethereum’s price is eyeing essential resistance at $3,522. Holding support at $3,340 opens opportunities to test $3,743 and eventually $4,072. Aiming for $3,500 is currently quite reasonable, and note that this momentum might present a significant rally opportunity for PEPE Coin.
Today’s ETHBTC chart aligns precisely with our expectations.
ETH rallies toward 0.03BTC, signaling its ‘alive and thriving’ stance after 142 days against BTC. A real upward reversal has begun, and a daily closing above 0.027BTC can lead to tremendous results.
