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The Federal Reserve has delivered the quarter-point rate cut markets demanded, and Ethereum is responding exactly as the “smart money” anticipated. While Bitcoin effectively shrugs off the news near $92,000, Ethereum is holding its pre-meeting gains above $3,300, validating the sharp rotation seen in the 24 hours leading up to the decision. This cut itself was merely a formality, as it had already been priced. However, its execution removes the final wall of worry for 2025 as it confirms that the easing cycle remains intact despite lingering inflation stickiness. So, in this immediate post-decision window, Ethereum is acting as the market’s preferred high-duration asset, leveraging its sensitivity to liquidity conditions to outperform the broader crypto beta. ETH’s spot-driven revaluation The quality of this rally distinguishes it from the leverage-fueled breakouts seen earlier in 2025. Market structure data indicate this is a repricing of the asset, not a speculative squeeze. According to CryptoQuant, funding rates across major derivatives exchanges remain subdued even as prices surge. This divergence is critical as earlier rallies this year often coincided with skyrocketing funding costs, a sign of exhaustion driven by over-eager longs. Ethereum’s Funding Rate (Source: CryptoQuant) However, the recent absence of “froth” suggests the bid is coming from spot buyers and institutional desks absorbing supply. Indeed, this aligns with on-chain signals leading up to the meeting. Santiment data reveals that large holders (known as whales and sharks) accumulated nearly 1 million ETH (valued at over $3.1 billion) in the three weeks leading up to this decision. These entities were positioning for a specific outcome: a Fed that prioritizes growth stability over aggressive disinflation. Ethereum Whale Acquisitions (Source: Santiment) Now that Powell has delivered that “put,” the $66.5 billion in stablecoin “dry powder” currently sitting on exchanges has the green light to be deployed. In…

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Filed under: News - @ December 11, 2025 9:34 am