Key facts
- Ethereum's price declined 1.53% to $1,890.
- Spot ETH ETFs experienced $14.53 million in inflows.
- Ethereum has seen three consecutive weeks of positive net inflows.
- Technical indicators like the 'death cross' suggest a bearish trend.
- The Average Directional Index (ADX) indicates growing trend strength.
Ethereum's price experienced a modest pullback, falling 1.53% to $1,890 on Wednesday, as traders adopted a cautious stance ahead of the Federal Reserve's anticipated rate decision. The cryptocurrency market, including Bitcoin hovering near $64,000, is largely in a holding pattern, with all eyes on the Fed's potential policy signals.
Despite the current price dip, spot Ethereum ETFs saw inflows of $14.53 million, contributing to three consecutive weeks of positive net flows totaling $71.17 million. However, the technical 'death cross'—where the 50-day exponential moving average falls below the 200-day EMA—remains in place, signaling a lingering bearish bias. While indicators like the Average Directional Index (ADX) show growing trend strength and positive momentum from the Squeeze Momentum Indicator, these are not yet strong enough to confirm a sustained upward trend.
Key technical levels include Fibonacci retracement resistance between $1,897 and $1,913. A hawkish tone from Fed Chair Kevin Warsh, or any indication of a rate hike, could push Ethereum back towards the $1,846–$1,874 support band. Conversely, a hold on rates coupled with a dovish outlook could potentially unlock further gains, with $1,944 and $1,980 as subsequent resistance levels.
Market sentiment, as reflected on the Myriad prediction market, still leans bearish, with a significant portion of traders anticipating a drop to $1,500 before any potential rally to $3,000. The current price action suggests a critical pivot point around the $1,913 level, which bulls need to reclaim to maintain the credibility of the recovery thesis.