Ethereum Price Prediction: Key Support Bounces Anticipates Big Move Ahead – ETH to $6,000?

Ethereum (ETH) exploded today and has booked a 9% gain thus far after the head of the Federal Reserve confirmed that rate cuts are still coming this year.

ETH is now standing just 5% away from its all-time high of $4,891 from four years ago. Trading volumes have surged to $53 billion in the past 24 hours and currently account for nearly 10% of the token’s circulating supply.

Powell’s Speech Triggers Broad Market Rally

“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” commented Chairman Jerome Powell during a widely awaited speech today.

In simple words, the Fed believes that market conditions justify a shift in its current approach. They have been cautious not to adjust rates too soon before adequately assessing the impact of the Trump administration’s aggressive trade policies.

However, economic data shows that inflation is still relatively under control while unemployment is relatively low. Hence, a rate cut at this point may contribute to producing faster economic growth without endangering the Fed’s compliance with its dual mandate.

XRP (XRP) and Solana (SOL) have also booked a 5% and 7% gain respectively in the past 24 hours and most cryptocurrencies have surged today after those comments but ETH is the best-performing token in the top 5.

Altcoin Season Index – Source: CoinMarketCap

An interest rate cut would be exactly what the market needs right now to kickstart altcoin season at a point when top tokens in this category are approaching all-time highs. BNB Coin (BNB) has already surpassed its previous highs at $882 and has been the only token apart from BTC to set a new record.

Ethereum Sets Course Toward $6,000 But Beware of This Bearish Signal

We have been tracking this Ethereum daily chart in our previous price predictions. We anticipated a retest of the $4,100 level from above. The token has now bounced off this marker with above-average trading volumes and respected its trend line support quite well.

This move could have set the stage for an explosive uptrend toward $6,000 for ETH after a remarkable recovery.

Average Transaction Fees on Ethereum – Source: Etherscan.io

The network’s Pectra upgrade has also provided a much-needed improvement to the network’s operational framework as gas fees are now relatively predictable compared to historical patterns.

Despite the latest volatility that ETH has experienced, we can see that the average transaction fee has stood in a relatively narrow range with the exception of some minor spikes. This is a notable improvement that makes the EVM more reliable and scalable than ever, which could result in higher institutional adoption down the road and, in turn, in higher demand for ETH.

Macro tailwinds like Powell’s confirmation today along with the current administration’s supportive initiatives for the crypto industry will provide the necessary tailwind to make this happen.

ETH/USD Daily Chart (Coinbase) – Source: TradingView

That said, the first bearish signal of this cycle has popped up in the daily chart as the Relative Strength Index (RSI) posted a bearish divergence. This happens when the oscillator makes a lower high even though the price has made a higher high.

Although this does not constitute a sell signal unless otherwise confirmed by the price action, it does call for some caution, especially if ETH breaks its trend line support or fails to make a new higher high in the next few days.

For now, if bullish momentum continues, ETH still offers a 30% upside potential if it gets to $6,000.