A ‘spooky’ Ethereum correlation suggests an imminent breakout

Ethereum is moving in tandem with small-cap stocks, and analysts say both assets could rise together with four potential Fed rate cuts ahead.

Ethereum has been highly correlated with small-cap equities, which are very sensitive to interest rates, and analysts say both could move higher with more cuts on the horizon.

Analysts at macro investor outlet Milk Road said on Tuesday that there is an “almost spooky” correlation between Ether (ETH) and the Russell 2000 Index, which comprises small-cap equities.

Both are highly sensitive to interest rates, and with as many as four consecutive cuts potentially on the horizon, the analysts said to “expect both of them to move up in tandem.”

Read more