As Bitcoin (BTC) hovers around the critical support and resistance level of $68,000, Ethereum (ETH), the largest altcoin with a fully diluted valuation of about $316 billion and a daily trading volume of roughly $15.1 billion, is approaching an important resistance point at $2,626.
In the past week, Ether’s price has rallied over 9 percent, thus approaching the upper border of a symmetrical triangular consolidation. Consequently, speculation of the next Ether move has resulted in a spike in its Open Interest (OI), with more traders betting on a bullish breakout.
What will happen next? Will Bitcoin and Ethereum continue their upward climb, or will they succumb to selling pressure? Read on to find out!
After months of reduced interest, marked by significant cash outflows from U.S. spot Ether ETFs, on-chain data indicates that whale investors are now buying more ETH.
In just the last two days, U.S. spot Ether ETFs have recorded net inflows of over $62 million, led by BlackRock’s ETHA. Meanwhile, the supply of Ether on centralized exchanges has dropped by nearly 3 million in the past 24 hours, primarily on Binance, Kraken, and OKX.
Crypto analyst Benjamin Cowen has pointed out that Ethereum’s market outlook is significantly influenced by macroeconomic changes, especially with the Federal Reserve’s upcoming quantitative easing (QE) program.
Cowen noted that Ether’s supply has been rising by about 60,000 per month for the past six months. He highlighted that it could take only three to four months for the supply to return to pre-Merge levels.
Cowen emphasized that the trend changed dramatically after the Fed’s 50 basis point rate cut.
“Monetary policy affects this stuff more than many of us care to admit. But more rate cuts will likely increase demand on the ETH network,”
The future of Ethereum is uncertain. How do you see the market evolving in the coming months?
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