Ether remains resilient despite bearish market conditions
The cryptocurrency market has been volatile since the start of the week, and more volatility is expected over the next few hours. Traders are bracing for potential volatility ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Symposium.
Bitcoin continues to trade around $113k while Ether is trading above $4,300, up by less than 1% in the last 24 hours. Ether’s resilience can be attributed to JPMorgan’s recent report that revealed that spot ether exchange-traded funds (ETFs) pulled in $5.4 billion in July, matching bitcoin ETFs. On the other hand, Bitcoin funds have since seen modest outflows, while ether vehicles continue to draw capital.
According to the bank, the SEC approval of in-kind redemptions for ether ETFs is expected to lower costs, boost liquidity, and further strengthen Ether’s positioning against Bitcoin.
The FOMC minutes released on Thursday revealed hawkish bias by the Federal Reserve, with analysts not expecting the apex bank to cut rates by next month. The market’s performance in the near term could be dictated by Powell’s speech later today.
The ETH/USD 4-hour chart is bearish and efficient as Ether has lost 7% of its value over the last seven days. The RSI of 51 shows that Ether is neutral, while the MACD lines suggest a bearish undertone.
At press time, ETH is trading at $4,314 per coin. If the daily candle closes above the $4,232 support, ETH could extend the recovery toward its next daily resistance at $4,488. An extended bullish run would allow it to aim for its yearly high at $4,788.
