Ethereum Poised for Recovery as Bank of Japan Governor Softens Rate Hike Talk
Ethereum (ETH) sets stage for massive comeback after Bank of Japan's interest rate decision, with three key reasons driving potential recovery rally. Can ETH overcome $2,618 resistance and reach $3,000?
Ethereum (ETH) could be setting the stage for a massive comeback after the recent developments surrounding the Bank of Japan (BOJ)’s interest rate decision. Additionally, the sentiment around ETH seems to be shifting toward a positive note after the recent market crash.
Bank of Japan Backpedels Interest Rate Hike Talks
Bank of Japan’s deputy governor, Shinichi Uchida, clarified in the early Asian session on Wednesday that the central bank will not raise interest rates amid uncertain market conditions. This remark contradicts last week’s hawkish comments by Central Bank Governor Kazuo Ueda.
These comments from Uchida caused the Nikkei Index to surge by 5% on Wednesday, and the positive effects could also be seen across the crypto and stock markets. Ethereum is in the perfect position to trigger a massive comeback.
Three Reasons for Ethereum Price Comeback
BOJ’s decision is the main bullish driver that has uplifted the stock markets worldwide. In addition to these, Ethereum has three key reasons why it could witness a massive recovery rally.
1. According to James Butterfill, CoinShares’ Head of Research, investors flocked to ETH in the first two days after the crash while avoiding BTC.
2. Spot Ethereum ETFs saw a net flow of $98.3006 million despite the recent market crash, illustrating the above point.
3. Nasdaq and BlackRock have filed with the US Securities and Exchange Commission (SEC) to list and trade options for spot Ethereum ETF.
These three developments are basic fundamental and are likely to have a huge impact on the price of Ethereum, especially if the macroeconomic conditions settle down.
NFA -DYOR
