As the dollar weakens and the Federal Reserve considers rate cuts, gold (XAU/USD) and Ethereum (ETH/USD) are attracting growing interest as stable and innovative alternatives. These assets are now at the center of the strategy of investors seeking refuge from economic volatility. Can these assets really maintain this uptrend? What levels could they reach in the coming months? Keep reading for an in-depth analysis and expert opinion.
Forecast for Ethereum: Growth Fueled by Demand for Decentralized Finance
With expectations of interest rate cuts from the US Federal Reserve (Fed), the cryptocurrency market, particularly Ethereum (ETH/USD), is capturing increased interest from investors. Indeed, in a context where the US dollar is depreciating, digital assets benefit from their potential for innovation and their ability to offer an alternative to traditional investments. The latest predictions for Ethereum indicate a price of $2,680 by the end of 2024, with a potential rise to $4,300 by 2029.
Experts note that Ethereum’s appeal is notably enhanced by its central role in the decentralized finance (DeFi) and decentralized applications (DApps) sectors. With favorable technical indicators and buy recommendations over the short to medium term intervals, Ethereum could see its price move significantly if investor appetite for alternative assets maintains. However, the volatility of cryptocurrencies remains a risk factor, especially in an environment where regulations are still uncertain.
XAU/USD Forecast: Central Bank Demand Supports Gold’s Rise
At the same time, Traders Union experts indicate that the gold market (XAU/USD) also benefits from the Fed’s rate cut prospects and the weakening of the dollar. Although gold and Ethereum differ in their fundamentals, gold remains a classic safe-haven asset. Massive purchases by central banks, mainly in Asia and Europe, aim to reduce their dependence on the US dollar and stabilize their reserves, thereby fueling demand for the precious metal.
Analysts project an average price of $2,785 for gold by the end of 2024, with a potential of $3,300 for the year 2025. Technical indicators show an uptrend for XAU/USD, supported by robust buy signals in moving averages. If current macroeconomic conditions continue, XAU/USD could reach $3,482 as early as October 2025, bolstered by institutional demand and a positive perception of gold as a safe asset.
Conclusion et Expert
According to financial expert Parshwa Turakhiya, the weakening dollar and expectations of rate cuts provide both gold and Ethereum a platform to consolidate their place in investment portfolios. Turakhiya points out that although these two assets operate differently, they are both seen as effective risk management tools in an uncertain economic climate. Gold, through its historical stability, and Ethereum, through its innovation potential, stand out as robust alternatives.
Turakhiya concludes by noting that if the Fed continues a low rate policy, gold and Ethereum will remain preferred options for investors looking to diversify their assets and mitigate the effects of global economic volatility.
