The crypto market welcomed a revival over the weekend, with Ethereum leading the way by breaking through the key resistance level of $4800, and XRP also returning above $3. Both major cryptocurrencies are showing strong upward momentum driven by expectations of easing from the Federal Reserve.
#Ethereum breaks through $4800, analysts: historic highs are within reach
On Friday, Ethereum experienced a long-awaited breakout—breaking through the $4800 resistance level for the first time since 2021, reaching a multi-year high of $4834, with more than a 14% increase in the past 24 hours. The core driving force behind this surge comes from Fed Chair Powell's 'dovish' speech.
Powell hinted at the Jackson Hole annual meeting that the current monetary policy is in a restrictive range, and changes in economic risk balance may require adjustments to policy stance. The market subsequently raised expectations for interest rate cuts significantly. CME data shows that the probability of a 25 basis point rate cut in September has reached 75%, and expectations of liquidity easing have driven risk assets to rise collectively, with Bitcoin rebounding from a low to $116,300, while Ethereum climbed from the $4200 support level.
In fact, since early August, Ethereum has been consolidating between the support level of $3762 and the resistance level of $4631. During this week's pullback, it successfully retested the critical area of $4000-4100, building momentum for future breakthroughs. Analyst Crypto Jelle pointed out that Ethereum's weekly chart displays a 'descending wedge' pattern, and after breaking through the $4600-4800 range, the next target is aimed at the historic high of $4878. He emphasized that Ethereum has broken a bullish momentum that lasted for 18 months this month, and there is currently 'almost no significant resistance,' with a long-term target looking towards $10,000.
As of the time of writing, Ethereum is priced at $4799, with a monthly increase of 32.6%.
Although analysts warn that a short-term pullback may occur after a significant rise, the view that 'the market's bullish intent is clear' has become a consensus.
#XRP returns to $3, buy signals emerging, likely to challenge $3.4
Led by Ethereum, XRP has also experienced a strong rebound, bouncing back from the support level of $2.7-2.8 on August 22, and is currently above $3, with a short-term target aimed at the $3.4 range high.
This round of rebounds is also benefiting from the Federal Reserve's easing expectations. After Powell's speech, the Dow Jones Industrial Average rose by 600 points, and market sentiment in the crypto market turned optimistic.
Analyst Ali Martinez captured XRP's buying signal in advance through the TD sequential indicator, and market data also confirmed the rebound momentum: in the second half of August, the net position changes in exchanges for XRP significantly decreased, indicating a reduction in exchange wallet supply and an increased willingness among holders to buy, reflecting market expectations for future price increases.
Technically, XRP has broken through the 20 and 50-week moving averages, and the Chaikin Money Flow (CMF) indicator has climbed above +0.05, indicating a continuous inflow of funds.
Analysts believe that as long as the bulls hold the demand area at $2.95, XRP is likely to successfully challenge the resistance level of $3.4. The current market sentiment and capital flow resonance provide support for XRP to continue its recovery momentum.
With the expectation of interest rate cuts by the Federal Reserve rising, the risk appetite in the crypto market has significantly increased. Ethereum has broken through a key resistance level and is aiming for a historic high, while XRP is steadily rebounding with added buy signals. The strong performance of these two major cryptocurrencies may indicate that the market is entering a new active cycle. Future attention should be focused on the Federal Reserve's policy implementation in September, as well as the breakthrough momentum of key resistance levels.
