Ethereum Price Prediction: Large Investors Purchase $300M ETH Amid Start of FOMC Meeting
Ethereum’s market performance on Tuesday, September 17, saw its price surge to $2,391, marking a 4% increase within the daily timeframe coinciding with the commencement of the FOMC meeting. Data from on-chain sources suggests that the buying pressure from whales may drive the next phase of the rally.
Following a period where major assets reached new monthly peaks around September 13, the cryptocurrency market entered a brief consolidation phase as bullish traders eased up on their buying activity in anticipation of the upcoming US Federal Reserve rate decision.
Recent market movements indicate the possibility of a significant bullish reversal. The FOMC meeting held on September 17 for the September 2024 monetary policy decisions came against the backdrop of declining Non-Farm jobs figures and record-high CPI inflation data, leading to expectations of a rate cut outcome. Analysts from CME Group have hinted at a 100% likelihood of a rate cut, with a majority of investors foreseeing a substantial easing of 475 to 500 basis points.
Ethereum and other top cryptocurrencies experienced notable price surges as the FOMC meeting unfolded. Starting the session at approximately $2,295, Ethereum’s price surged by 3.54% within the daily timeframe, surpassing the $2,370 mark by September 17. This surge reflects the heightened sensitivity of crypto markets to macroeconomic data, indicating early bullish momentum that could pave the way for a potential breakout if the Federal Reserve confirms its first rate cut in nearly three years on Wednesday.
A rate cut could serve as a significant boost for risk assets like Ethereum. Lower interest rates reduce borrowing costs, inject liquidity into the markets, and encourage more speculative investments. This scenario could lead investors to shift their focus from traditional yield-bearing assets towards higher-risk, higher-reward opportunities such as cryptocurrencies.
The recent large-scale purchases by Ethereum whales, amounting to $300 million, just ahead of the FOMC meeting, signal a bullish sentiment. This strategic accumulation by influential investors is often seen as a precursor to a positive market shift, suggesting expectations of rising ETH prices in response to upcoming macroeconomic developments like a rate cut.
Technically, Ethereum’s price action exhibits a bullish trend following a 3% surge on September 17. Indicators like the Bollinger Bands and Fisher Transform point towards potential upward movement, with key resistance levels at $2,392 and $2,567.79. Reclaiming these levels could shift market sentiment positively, while support levels at $2,218 and $2,100 are crucial in case of increased volatility.
In conclusion, the confluence of technical signals and macroeconomic factors, including the potential Fed rate cut, indicates the likelihood of sustained gains for Ethereum. Traders are advised to monitor key levels closely for potential breakout opportunities and market sentiment shifts.
