Bitcoin and Ethereum are holding steady as optimism over potential U.S. rate cuts drives a cautiously bullish mood in the crypto market. Bitcoin has managed to sustain levels above $112K, reflecting resilience despite recent macro headwinds, while Ethereum trades around $4,300, showing relative stability amid mixed altcoin performance. Investors are increasingly pricing in Federal Reserve easing this month, with expectations ranging from a 25 bps to a 50 bps cut. This growing rate-cut optimism is fueling liquidity-driven bets, though caution remains ahead of the Fed’s September decision.
The BTC price has broken an important resistance zone, which validates a revival of a bullish trend. The token is consolidating above $112,000, a zone that has emerged as near-term support. In the times when the price was expected to test the support of the descending parallel channel, the potential rate cut has turned into a huge bullish catalyst. Now the question arises whether the current upswing is short-lived.
The Bollinger bands are going parallel, while the OBV continues to descend, which suggests the bears are holding a notable dominance. However, a resistance has formed around $115K to $117K, where profit-taking could intensify. A confirmed breakout above this region may open the door for a rally toward $120K, while a failure could drag the levels close to $110K. The market is showing signs of accumulation, but the traders remain cautious given the potential for volatility around FED announcements.
Ethereum is holding around $4,300, supported by steady institutional interest and ongoing ecosystem growth. Meanwhile, the price has been consolidating within a very narrow range since the start of the month and failing to rise above $4500. Now that the short-term resistance lies near $4,450, there is strong support around $4,200. Now the question arises whether the tight consolidation will lead towards a macro trigger.
The ETH price seems to be consolidating within a predefined resistance and support, as it did before. A massive upswing followed that elevated the levels to a new ATH. Currently, the price is consolidating within a similar pattern, while the bulls are trying for a trend reversal. As the MACD suggests a potential bullish crossover, the ETH price is expected to undergo a parabolic recovery and rise by another 10% to 12% to mark a new ATH.
Besides, altcoins such as XRP, Solana, and Dogecoin have shown sharper gains compared to BTC and ETH, reflecting higher beta behavior in response to rate-cut speculation. However, these moves remain largely range-bound, signalling that investors are not yet in full risk-on mode.
The crypto market’s trajectory in September hinges heavily on the Fed’s rate decision. While Bitcoin and Ethereum are showing stability, volatility is expected to rise as investors react to policy signals. A dovish Fed could reinforce bullish momentum, pushing BTC toward $120K and ETH closer to $4,600. On the other hand, a smaller-than-expected cut—or cautious Fed guidance—may trigger short-term pullbacks.
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