In-Depth Ethereum (ETH) Analysis Following Federal Reserve's Rate Cut
Ethereum (ETH) Shows Resilience After Fed Rate Cut
The Federal Reserve's recent rate cut has propelled Ethereum (ETH) to new heights, with its value rising over 5% to $2,428. While the broader market enjoys a rally, Ethereum ETFs have experienced significant outflows.
Ethereum ETF Holders Remove Their Funds
- ETH spot ETFs faced a net outflow of $9.74 million on Wednesday, totaling $30.36 million for the week.
- This occurred amid a strong market response following a 50 basis points interest rate cut.
Factors for these outflows might include profit-taking by ETF holders or a shift toward direct ETH ownership due to lower interest rates encouraging riskier investments.
Market Dynamics and Trading Volume
- ETH trading volume reached $21 billion, a staggering 29% increase.
- Open interest in ETH derivatives climbed by 8%, signalling a bullish market sentiment.
The combination of price increase and rising demand indicates a strengthening of market momentum.
Future Price Predictions for Ethereum (ETH)
Ethereum might break above its 20-day EMA, which, if achieved, could lead to a rally past $2,579 towards the resistance level at $2,868. However, any decline in buying pressure could push the price below $2,111.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.