Ethereum Eyes $5K on Rate Cuts Hopes & U.S. Shutdown Resolution

Ethereum (ETH/USD) continues to show resilience as macroeconomic conditions begin to favor risk assets. With the U.S. Federal Reserve expected to cut interest rates by 25–50 basis points in December, investors are gradually rotating back into crypto, anticipating improved liquidity and higher capital inflows. Lower interest rates typically weaken the dollar and boost speculative assets like ETH and BTC, making this a potential catalyst for Ethereum’s next bullish leg.

Additionally, progress toward resolving the U.S. government shutdown, which has lingered for weeks, is helping stabilize investor sentiment. Once uncertainty around fiscal operations fades, institutional activity is expected to pick up across both traditional and digital markets — further supporting Ethereum’s recovery momentum.

On-chain fundamentals remain strong. Ethereum’s staking deposits continue to rise, now exceeding 33 million ETH locked in validator contracts. This sustained demand reduces circulating supply and underpins long-term price stability. Meanwhile, the Ethereum network maintains its dominance in decentralized finance (DeFi), non-fungible tokens (NFTs), and Layer-2 scaling activity, positioning it as the backbone of Web3 infrastructure even amid increasing competition.

Technically, ETH/USD has bounced from the $3,200 support zone, aligning with a long-term ascending trendline. The chart shows potential for a sustained push toward the $4,150 resistance before retesting and targeting the $5,000 high. A clear daily close above this level would confirm a continuation of the larger bullish structure and could open the door to new all-time highs in 2026 if macro tailwinds persist.

Overall, Ethereum’s fundamentals and technicals are converging at a favorable point, and with rate cuts on the horizon and fiscal fears fading, ETH may be preparing for a powerful rally into Q1 2026.