Ethereum price prediction: Federal Reserve cuts interest rates, ETH on-chain data shows bullish signs
Ethereum today's price: $4,530
Since the beginning of September, Ethereum whales have accumulated over 1 million ETH.
Weekly selling pressure has also significantly shrunk, dropping from 1.8 million ETH on August 15 to 783,000 ETH.
ETH bulls and bears continue to battle at the 20-day SMA support level and the $4,500 resistance level.
With the Federal Reserve (Fed) cutting rates by a quarter of a percentage point on Wednesday, Ethereum (ETH) on-chain data shows bullish signs.
After the Federal Reserve cut interest rates by 25 basis points, will Ethereum see an upward trend?
CryptoQuant data shows that with the restoration of the Federal Reserve's policy shift, rising whale demand, reduced selling pressure, renewed network activity, and increased stablecoin supply, Ethereum investors may lean towards a potential upward trend.
Investors holding 10,000 to 100,000 ETH (also known as 'whales') have cumulatively increased their holdings by 1 million ETH since early September, bringing the total holdings to 21.39 million ETH. The expansion of whale holdings aligns with moderate increases from smaller investors.
During the same period, cumulative addresses (i.e., wallets without sale records) received 4.1 million ETH. In just half the time, these addresses, primarily consisting of new wallets, have accumulated nearly the funds equivalent to the total inflow of 4.5 million ETH in August, setting a new record for Ethereum.
CryptoQuant pointed out in a report on Wednesday that while demand has increased, sales activity has significantly decreased, with the 7-day moving average of ETH inflow to exchanges dropping from 1.8 million ETH on August 15 to 783,000 ETH, the lowest level since July.
Meanwhile, since mid-August, the supply of USDT on Ethereum has increased by $11 billion, indicating that under the backdrop of the Federal Reserve's interest rate cut decision, 'dry powder' has expanded.
Meanwhile, Ethereum network activity also rebounded in September, with the number of active addresses and transactions recovering an upward trend after a decline in mid-August.
Despite the growth of key on-chain data, Ethereum has been in a range-bound fluctuation over the past three weeks, consistent with the historical downturn period of the cryptocurrency market from August to September.
With the confirmation of interest rate cuts, it is still unclear whether the Federal Reserve's decision will enhance these on-chain indicators, thereby stimulating risk appetite or triggering sell-off news events.
Ethereum Price Prediction: ETH bulls and bears are battling at the 20-day moving average and the $4,500 resistance level.
According to Coinglass data, the total liquidation amount of Ethereum futures in the past 24 hours was $95.4 million, comprising $67.9 million and $27.5 million, respectively.
ETH is currently retesting the 20-day simple moving average (SMA) after facing resistance slightly above $4,500 on Wednesday. If ETH breaks below the 20-day simple moving average, it may find support at the 50-day simple moving average around $4,300-$4,400, where investors have purchased approximately 1.7 million ETH in the past few weeks. If ETH continues to decline, the psychological level of $4,000 may also become a key support level.
The relative strength index (RSI) has fallen below its moving average yellow line and is testing neutral levels, while the stochastic oscillator (Stoch) has broken through the midline. A further drop in the RSI below the midline will accelerate bearish momentum.
Stay tuned for continuous updates @优化师 esteemed traders, and leave your views in the comments section.