News exploded, technical resonance, ETH soared directly by nearly 400 points! This wave of market movement is a 'black swan' from the Fed colliding with the 'golden pit' of the crypto market!
Market review: Why did ETH suddenly surge?
Last night, from July 16 to 17, ETH skyrocketed from 3029 to 3024, with a daily increase of nearly 12%, which can be described as a 'sudden rise out of nowhere'. Combining the latest news and technical analysis, this surge is by no means coincidental, but the result of multiple favorable factors coming together.
1. Fed 'earthquake', the market bets on rate cuts!
Trump to fire Powell? The White House confirmed that Trump has drafted a letter to dismiss Federal Reserve Chairman Powell. This news directly triggered market panic, with traders frantically betting that the Fed may be forced to cut interest rates urgently.
Historical patterns: Rate cuts = good news for risk assets. Once the Fed shifts to easing, the dollar weakens, and funds will flow into safe-haven assets like Bitcoin and ETH. When Powell was threatened by Trump in 2019, BTC also surged by 15% in a single day, and this time ETH's movement is similar.
2. Good news suddenly emerges from U.S. cryptocurrency legislation!
House of Representatives advancing crypto bill: The U.S. House of Representatives has gathered enough votes to prepare for a vote on the cryptocurrency regulatory framework. If passed, it means that the compliance process accelerates, lowering the entry threshold for institutional funds, and ETH, as the leader in smart contracts, will inevitably benefit.
Case reference: When the Bitcoin spot ETF was approved in 2024, BTC saw a weekly increase of over 30%, and this time ETH may replicate a similar scenario.
3. Technical analysis: BOLL breakout + MACD golden cross, the main force uses momentum to push up!
Bollinger Bands widening: ETH price strongly broke through the upper band (UB:2495.92), with the middle band (2445.71) providing support, a typical strong bullish signal.
MACD golden cross confirmed: DIFF (7.05) crosses above DEA (2.59), red bars turn green and continue to expand, indicating bulls are fully in control.
Volume-price correlation: Although the trading volume (77,811) has not significantly increased, after breaking through key levels, algorithmic trading and following orders surged in, driving prices up rapidly.
Market perspective: How will the market move next?
Short-term policy implementation:
If the Fed really fires Powell, the market may continue to hype 'rate cut expectations', and ETH is expected to challenge the 3500 mark.
If the crypto bill passes, ETH will welcome a 'compliance bull', with a target of the previous high of 3423.
Beware of correction risks:
After a surge, profit-taking pressure may occur, with short-term support at 3310 and resistance at 3340.
If Trump makes only verbal threats and does not fire Powell, the market may quickly give up its gains.
Bull markets often see steep declines, while bear markets often see rapid rises, but once a trend is formed, it won't end easily! In this wave of ETH market, will you choose to 'chase highs for profits' or 'wait for corrections to buy the dip'? Share your strategy in the comments!
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