The positive correlation between the ETH/BTC pair and the US Dollar Index has strengthened ahead of the Federal Reserve’s September rate decision.
Ether (ETH), the native token of the Ethereum network, has fallen by roughly 25% against Bitcoin (BTC) since the start of 2024 and the lowest levels in 40 months. The outlook for Ether remains bearish in the coming weeks, particularly as the likelihood of Federal Reserve interest rate cuts in September increases.
A key factor in Ether’s bearish outlook is the growing positive correlation between the ETH/BTC pair and the US dollar Index (DXY), which has dropped 5.35% from its 2024 peak.
As of Aug. 26, the 30-day average correlation coefficient between ETH/BTC and DXY was 0.78, up from 0.10 at the start of the year.
