Ethereum News: Ethereum Eyes New Highs as ‘Cup-and-Handle’ Pattern Form and Fed Cuts Point to $5,200 Target

Key TakeawaysEthereum shows a “spooky” correlation with U.S. small-cap stocks, both sensitive to Fed rate cuts.Analysts expect ETH and the Russell 2000 to rise together as up to four rate cuts are priced in.ETH’s yield advantage over Bitcoin could attract more capital as liquidity returns to risk assets.Analysts target a $5,200–$8,500 range for Ether’s next leg higher.Ethereum’s price movements are increasingly mirroring those of U.S. small-cap equities, suggesting a potential synchronized breakout ahead of expected Federal Reserve interest rate cuts, analysts say.According to macro investor outlet Milk Road, Ether (ETH) and the Russell 2000 Index — which tracks 2,000 smaller U.S. companies — have shown an “almost spooky” correlation in recent weeks. Both tend to perform strongly when monetary policy eases, and analysts believe they could “move up in tandem” as rate cuts accelerate.Futures data from the CME FedWatch Tool shows markets pricing in a 95.7% chance of a 0.25% cut at the Fed’s Oct. 29 meeting and an 82.2% probability of another in December — with as many as four consecutive cuts expected over coming months.“Unlike Bitcoin, Ether generates yield, and that matters in a world where rate cuts are practically guaranteed,” said Justin d’Anethan, head of partnerships at Arctic Digital.Technical charts show ETH and the Russell 2000 forming a cup-and-handle pattern, a bullish structure often preceding breakouts. Analyst Matt Hughes said Ethereum “looks primed to break into all-time high territory” if it holds above $4,350, targeting $5,200 next, while analyst Poseidon sees the cycle peak near $8,500.Meanwhile, MN Fund founder Michaël van de Poppe added that as gold cools off from record highs above $4,000, risk capital may rotate back into assets like Ethereum, calling it a “textbook setup for a new all-time high.”At the time of writing, Ether trades near $4,430, down 6% on the day, hovering above a key support level at $4,400 — a zone analysts say could trigger Ethereum’s next big move, according to Cointelegraph.