Since Fed reduced rates by 50 bps, Ethereum may experience further buying pressure
Ethereum is trying to rebound after the Fed cut rates 50 basis points.
Due to its poor performance versus Bitcoin, ETH holders are divided.
Ethereum may breach $2,395 resistance.
After the Federal Reserve (Fed) dropped interest rates by 50 basis points, Ethereum (ETH) rose over $2,330 on Wednesday as the market recovered. Meanwhile, Ethereum ETFs lost $15.1 million.
Ethereum tries to recoup from Fed reduction
After the Fed cut interest rates by 50 basis points to 4.75%-5% on Wednesday, Ethereum and the crypto market are rising. This is the first rate reduction since March 2020, when the agency dropped rates to 0%.
After the rate drop, investors may purchase ETH again in the coming weeks, boosting its price. Q4 has also been the greatest crypto market season. The following months might be key for Ethereum.
Large holders with supply exceeding 100K have held onto their coins, perhaps throughout staking and DeFi yield-bearing protocols. Slow-accumulating mid-tier holdings (10K–100K) are mildly positive.
In contrast, US spot Ethereum ETFs lost $15.1 million on September 17, with Grayscale's ETHE losing $17.9 million and its Ethereum Mini Trust gaining $2.8 million.
Ethereum might reach $2,817 if it breaks resistance.
Wednesday's Ethereum price is at $2,330 following Tuesday's rejection around $2,395. Long and short liquidations totaled $17.69 million and $5.19 million, respectively, in the preceding 24 hours on ETH.
Ethereum trades in a rectangular channel with resistance and support between $2,395 and $2,207. A declining trendline from May 27 and the 50- and 200-day SMAs may potentially provide resistance.
The Fed's 50-basis-point rate drop might affect ETH's next move. ETH may break $2,395 and rise to $2,817. If ETH fails to reject $2,817, it targets $3,237.
If support fails, ETH might fall below $2,111. A daily candlestick closure below this level will disprove the argument and cause substantial losses.
