Trump Drops the ETH Bomb! Uncertainty in Fed rate cuts, is the $4300 turbulence hiding a shocking trap?
As Ethereum struggles around the $4300 mark, a grand financial drama directed by Trump and the Fed is unfolding! On one side is the 'digital bomb' thrown out from the White House summit, and on the other is the interest rate killing move hidden at the Jackson Hole meeting. The lifeline of ETH has been firmly grasped—this round of turbulence is far bloodier than you think!
Trump's 'Digital Empire' Ambition: ETH included in national strategic reserves.
In March 2025, Trump issued an executive order at the White House crypto summit, directly igniting the market! The U.S. officially establishes a 'strategic Bitcoin reserve' and includes Ethereum, Ripple, and four other major cryptocurrencies into the national digital asset library. This move is equivalent to giving ETH an 'official certification' gold label!
Data Shock:
Institutional Funds Flood In: Since the approval of Ethereum ETF in May, ETPs and listed companies have purchased 2.83 million ETH, valued at over $10 billion!
Supply-demand imbalance intensifies: Demand is expected to reach 5.33 million ETH in the next year, while new supply is only 800,000, making demand seven times that of supply! Whales are secretly accumulating: a mysterious address has bought 20,300 ETH in the past ten days, all deposited in Aave and Compound for interest, while retail investors are still hesitating, capital has already started the 'ultrasound' buying mode!
Trump's calculations are clear: bind ETH to dollar hegemony and create a hybrid currency system of 'digital gold + stablecoin.' When the U.S. Treasury writes Bitcoin and ETH into its balance sheet, this game is already no longer a gamble for retail investors!
Uncertainty in Fed Rate Cuts: The life and death speed of ETH.
On August 19, Federal Reserve Chairman Powell released hawkish signals on the eve of the Jackson Hole meeting, causing ETH to plummet by 5%! The market originally expected four rate cuts in 2025, but now it’s been dampened—only two rate cuts expected for the year, tightening liquidity has made high-risk assets tremble.
Key Contradiction Point:
Short-term Bearish: Adjustments in interest rate expectations lead to tech stock sell-off, with the Nasdaq index plummeting by 1.5% in a single day, dragging down the crypto market.
Long-term Positive: Even if rate cuts slow down, a 25 basis point easing is still enough to support risk assets. Bitcoin previously surged to $120,000 due to rate cut expectations, and ETH's upside potential has just begun!
Technical Support: ETH forms a 'golden pit' at $4206, with the middle track of the Bollinger Band ($4279) becoming a lifeline for bulls. RSI is neutral, with no oversold signals present; a pullback is an opportunity to get on board!
Bloody Game: $4300 is the battleground for bulls and bears.
Currently, ETH is fluctuating around $4300, which is essentially the ultimate showdown between bulls and bears:
Bullish Cards: Trump's policy dividends, institutional buying spree, record high net inflow into Ethereum ETF.
Bearish Lifeline: Uncertainty in Fed policy, short-term profit-taking.
Data Reveal:
Support Level at $4206: A historically dense trading area, tested multiple times without breaking, with strong buying pressure below.
Resistance Level at $4386: Once broken, it will trigger 'Bollinger Band breakout + RSI overbought' signals, aiming for $5000!
Volume Mystery: Shrinking volume near $4300 suggests a turning point is imminent—either a surge or a crash!
Follow the capital closely, don’t be cannon fodder.
Focus on the Fed: Powell's speech on August 22 is key! If dovish signals are released, ETH will directly break through $4386.
Ambush Altcoins: L2 projects in the Ethereum ecosystem (such as Arbitrum, Optimism) may rise in succession, with funds shifting from BTC to the ETH ecosystem.
Avoid Leverage: Current market volatility is surging, with contract liquidation amounts exceeding $700 million in a single day; spot trading is the way to go!
Trump's 'Digital Dollar Hegemony' plan has entered deep waters, and the path of the Fed's rate cuts still holds uncertainties. The turbulence at $4300 is just the prologue of this financial war—either become prey for capital or feast on meat alongside the whales!
The technical landscape has made its stance clear: $4300 is the 'bull-bear dividing line'! As long as the middle track of the Bollinger Band ($4279) holds, a short-term pullback is a bait for bears; once it breaks through the $4386 resistance with volume, RSI will trigger an overbought signal, combined with institutional buying frenzy, $5000 is not the end! Beware of disruptions from the Fed's speech on August 22, but Trump's 'digital reserve' dividends remain, and pullbacks are opportunities for a full-risk play—let's go for it!
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