Ethereum (ETH -3.73%) is gaining ground in Monday's trading. As of 5:30 p.m. ET, the cryptocurrency's token price was up 6.6% over the previous 24 hours.
News about a potential end to the government shutdown and a potential de-escalation in the trade war between the U.S. and China are helping to push cryptocurrency valuations higher today. Expectations that the Federal Reserve is on track to deliver another cut for interest rates is also helping to support gains for Ethereum and other cryptos.
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Ethereum rises as investors bet on key risk factors easing
The cryptocurrency market has seen valuation pullbacks over the last month as investors have honed in on macroeconomic and geopolitical risk factors, but Ethereum and most other top-10 tokens are enjoying some rebound momentum in Monday's trading.
U.S. Treasury Secretary Scott Bessent recently stated that some progress has been made when it comes to resolving trade issues with China. Comments from a White House advisor suggesting that government shutdown issues could also be resolved this week are also helping to power gains for Ethereum and other cryptocurrencies.
Is the Federal Reserve gearing up to support more gains for Ethereum?
The Federal Reserve is now widely expected to issue another 25-basis-point interest rate cut when it meets in October. Investors are also increasingly bullish on the potential for another quarter-point cut at the Fed's meeting in December.
Macroeconomic and geopolitical factors will likely continue to play big roles in shaping Ethereum's pricing action in the near term. If the Fed issues two more rate cuts this year, it could help power a sustained rally for Ethereum and other top coins in the crypto market.
