As Bitcoin (BTC) continues to teeter around the critical support and resistance level of $68,000, all eyes are on Ethereum (ETH), the largest altcoin in the market. With a fully diluted valuation of approximately $316 billion and a daily trading volume of around $15.1 billion, Ethereum is inching closer to a crucial resistance point at $2,626.
Over the past week, Ether’s price has surged by over 9 percent, bringing it close to the upper boundary of a symmetrical triangular consolidation pattern. This has sparked speculation about the next move for Ethereum, leading to a surge in Open Interest (OI) as more traders bet on a bullish breakout.
Recent on-chain data suggests that Ethereum whales are back in action after months of reduced interest. U.S. spot Ether ETFs have seen net inflows of over $62 million in just the last two days, with BlackRock’s ETHA leading the way. Additionally, the supply of Ether on centralized exchanges has dropped by nearly 3 million in the past 24 hours, primarily on platforms like Binance, Kraken, and OKX.
Crypto analyst Benjamin Cowen has highlighted the influence of macroeconomic factors, particularly the Federal Reserve’s upcoming quantitative easing (QE) program, on Ethereum’s market outlook. Cowen pointed out that Ethereum’s supply has been increasing by approximately 60,000 per month for the past six months. He suggested that it could take just three to four months for the supply to return to pre-Merge levels.
Cowen also emphasized the impact of monetary policy on Ether demand, noting that the trend shifted significantly after the Fed’s 50 basis point rate cut. He suggested that further rate cuts could potentially increase demand on the Ethereum network.
With the future of Ethereum hanging in the balance, the market’s evolution in the coming months remains uncertain. Will Bitcoin and Ethereum continue their upward trajectory, or will they face selling pressure? Only time will tell. Stay tuned for more updates on the crypto market’s latest developments.