With the Federal Reserve potentially considering rate cuts and the cryptocurrency market picking up steam, Ethereum (ETH) nearing $3,500 has taken center stage, drawing considerable attention and strategic positioning from investors eager to secure the “second digital gold.”

After July’s weaker-than-expected U.S. nonfarm payroll numbers, the odds of a Fed rate cut in September have risen sharply. This shift has improved global risk sentiment, spurring renewed momentum in digital assets. Against this backdrop, ETH’s approach to $3,500 has captured the spotlight, attracting both traditional capital and institutional buying interest.

Macroeconomic Review

Chart: https://www.gate.com/trade/ETH_USDT

Since the start of the year, the U.S. Dollar Index has remained under pressure as global equities and bonds have traded more in sync, creating a favorable environment for risk assets. With U.S. inflation retreating, expectations for monetary easing have continued to support crypto assets, including ETH. At the end of July, ETH rebounded to around $3,900 before a modest pullback, now consolidating near $3,600.

Policy Dynamics and Market Sentiment

Fed officials have recently adopted a dovish posture, emphasizing data-dependent flexibility for future policy. Meanwhile, the European Central Bank and Bank of England have both expressed caution in response to economic headwinds. Ample liquidity in financial markets has encouraged investors to rotate capital back into crypto. On the domestic front, regulators are steadily rolling out pilot programs for crypto derivatives, bolstering market confidence further.

Investment Opportunities and Risk Advisory

• Entry opportunities: If ETH pulls back toward $3,500, it’s seen as an attractive value zone for medium- to long-term investors—ideal for dollar-cost averaging or phased accumulation. In the short term, monitor breakout signals driven by trading activity, and consider prudent participation via leveraged products.
• Risk management: Stay alert to unexpected policy shifts, black swan events, or adverse rumors. Set stop-loss orders below $3,400, and strictly manage your position sizes.

Strategies for Key Price Levels

1. Phased entry: Distribute your purchases around the $3,800, $3,600, and $3,500 levels;
2. Take-profit targets: Set your initial target near $4,000—if that’s breached, look to $4,200 for further upside;
3. On-chain monitoring: Watch wallet balances and large holder moves, as these often indicate broader trends. Use this data to inform your entry and exit decisions.