Trading volumes have gone up by 47% to $65 billion, currently accounting for 12% of the asset’s circulating market cap. This highlights that trading activity remains quite high, and, in this case, it favors a bullish outlook as buying pressure has increased.
The daily chart shows that ETH bounced off $3,500 as buyers’ pending orders backstopped the crash.
However, this level could be revisited soon if the $4,000 support is lost. Today’s ETF activity could either confirm or invalidate a bearish outlook.
If investors take out billions from these vehicles, it would mean that sentiment has shifted, as ETH-linked funds had been attracting billions for days before the crash.
The Relative Strength Index (RSI) sent a sell signal upon crossing below the 14-day moving average, increasing the odds of a deeper correction.
The $3,500 level matches a trend line support for ETH that coincides with its 200-day exponential moving average (EMA), making it the key demand zone to watch in case the selling spree resumes.
Meanwhile, if prices keep rallying, we could witness another leg up to $4,800 soon that may ultimately result in a bullish breakout to $5,000, as ETH could play catch-up with BNB.
Tomorrow, the head of the Federal Reserve, Jerome Powell, will be giving a speech at the National Association for Business Economics (NABE). Any remarks concerning the impact of Trump’s decision on the economy and how the Fed may react to these latest events could have a major impact on crypto prices.
It has been the baseline assumption for market participants that the Fed would cut rates again this month by another 25 basis points.
However, if they opt for a “wait and see” approach once again and delay the cut, that could prompt an even sharper decline in the price of cryptocurrencies.
Only BNB Coin (BNB) has managed to make multiple all-time highs this year among altcoins. Ethereum, Solana (SOL), and XRP (XRP) have lagged behind their peers as reflected by their much lower year-to-date (YTD) gains.
Market sentiment soured as a result of last Friday’s crash, and it is highly likely that the market will need further evidence to convince itself that the worst is over.
