Ethereum News Today: Ethereum's Ecosystem Drives Bull Run as Rate Cuts Fuel Confidence

Ethereum (ETH) appears to be gaining momentum as the market anticipates a rate-cutting cycle, with key analysts identifying the cryptocurrency as a top performer during such periods. According to Yi Lihua, founder of Liquid Capital, ETH has historically outperformed Bitcoin (BTC) in environments marked by monetary easing, and the current cycle may be no different. Yi Lihua recently highlighted on social media platform X that after ETH broke its all-time high, the next target is to establish a new high relative to BTC, with a price level above $10,000 as a potential benchmark [1].

The analyst noted that during the rate-cut cycle, Ethereum has maintained a strong upward trend, outpacing BTC while also driving gains in other major cryptocurrencies. These include Solana (SOL), TON, Litecoin (LTC), and tokens such as ENA, AAVE, Pendle, and UNI—many of which are leaders within the Ethereum ecosystem [2]. Yi Lihua emphasized the broader dynamics of the crypto market, stating that the rally reflects the performance of high-impact projects rather than isolated price action. This, in turn, suggests a broader confidence in the infrastructure and innovation surrounding Ethereum.

In terms of market strategy, Yi Lihua advised investors to avoid shorting the market and instead capitalize on pullbacks to accumulate positions. The analyst also warned against using high leverage, given the risks of short-term corrections in a volatile bull market [1]. Additionally, Yi Lihua encouraged investors to explore off-market income opportunities, which could include staking, yield farming, or other decentralized finance (DeFi) strategies. This advice aligns with the broader theme of capital preservation and strategic positioning during a bullish phase.

The recent surge in ETH prices follows a dovish speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium in August 2025. The speech, interpreted as signaling potential monetary easing, led to a sharp rise in ETH prices, breaking its previous all-time high [2]. Yi Lihua attributes this rally to the combination of macroeconomic factors and the underlying strength of the Ethereum ecosystem, which continues to attract developers and institutional interest.

While the market remains speculative, Yi Lihua’s insights reflect a cautious bullish outlook based on Ethereum’s historical performance in similar economic environments. The analyst’s perspective is echoed by broader market trends, with multiple tokens in the Ethereum ecosystem showing strong correlations with ETH’s performance. As the rate-cut cycle unfolds, the cryptocurrency’s ability to maintain its relative strength against BTC and other digital assets will remain a key indicator for investors and analysts alike [1].

Source: [1] Yi Lihua: The target for ETH is above 10000 USD (https://www.chaincatcher.com/en/article/2199905) [2] Renowned Analyst Says “Ethereum Outperforms BTC in Interest Rate Cut Cycles”, Reveals... (https://en.bitcoinsistemi.com/renowned-analyst-says-ethereum-outperforms-btc-in-interest-rate-cut-cycles-reveals-eth-price-target/)