TLDR
- Ethereum price jumped 8-10% to reach $3,390-$3,400, its highest level since mid-November
- Federal Reserve expected to cut interest rates by 25 basis points on December 10, with 89.6% probability driving crypto market optimism
- BlackRock filed for an iShares Ethereum Staking Trust ETF that would provide staking yields to investors
- ETH/BTC ratio reached its strongest level since late October, showing rotation from Bitcoin into Ethereum
- Bitcoin surged above $94,000, boosting confidence across altcoins including Ethereum, Cardano, XRP, and Solana
Ethereum price climbed past $3,390 on Tuesday, marking its strongest performance since mid-November. The second-largest cryptocurrency rallied 8-10% over a 24-hour period, outpacing Bitcoin’s 4.5% gain.
The crypto market gained 4% in the past day as investors anticipated a Federal Reserve rate cut decision. The probability of the Fed reducing rates by 25 basis points on December 10, 2025, stands at 89.6%.
Lower interest rates typically favor assets sensitive to liquidity, including cryptocurrencies. The Federal Open Market Committee meeting is scheduled for tomorrow, with expectations for the Fed’s third rate cut this year.
Bitcoin climbed above $94,000 after recovering from lows near $89,500. This move boosted confidence across the altcoin market. Other leading cryptocurrencies including Cardano, XRP, and Solana posted gains alongside Ethereum.
BlackRock ETF Filing Drives Ether Strength
BlackRock filed Monday to introduce the iShares Ethereum Staking Trust. The asset management giant currently issues the most popular spot ETH ETF. The new trust would provide staking yields to investors.
The official prospectus filing for ishares Staked Ethereum ETF, their fourth crypto filing. Spot btc, eth, btc income and now this. pic.twitter.com/M6vRxiGm78
— Eric Balchunas (@EricBalchunas) December 8, 2025
Joel Kruger, market strategist at LMAX, said the rally reflects “improving regulatory expectations and renewed optimism around ETF-related inflows.” The prospect of yield-bearing crypto products reaching more investors has added support to ETH’s performance.
The ETH/BTC ratio reached its strongest level since late October. This ratio tracks Ethereum’s performance relative to Bitcoin. The strengthening ratio signals rotation from Bitcoin into Ethereum.
Technical Indicators Show Continued Momentum
Ethereum surpassed major resistance levels according to 4-hour chart analysis. The MACD indicator shows a positive crossover, with the MACD line shifting above the signal line at 22.95.
$ETH is bouncing here 🔥 pic.twitter.com/nUlap5e8kn
— Roma (@Roma_spelvin) December 9, 2025
The RSI stands at 76, indicating Ethereum is approaching overbought territory. However, price action can continue upward despite elevated RSI readings.
Ethereum broke through resistance at $3,300 and is targeting $3,500 as the next key level. Maintaining support above $3,300 would support continued upward movement.
The Commodity Futures Trading Commission introduced a pilot program that has contributed to market optimism. The program is expected to increase confidence in the cryptocurrency sector.
Paul Atkins, chairman of the U.S. Securities and Exchange Commission, has promoted tokenization as a key innovation. He stated in a Fox Business interview last week that real-world asset tokenization could change the financial system by reducing settlement risks and trade gaps. Ethereum stands to benefit from regulatory efforts supporting tokenization of financial instruments like bonds, funds, and real estate on smart contract platforms.
