ETH price fell 3% despite the Federal Reserve’s 25 bps rate cut and announcement to end quantitative tightening, as bears get an upper hand.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
2 mins read
The FOMC meeting and Fed rate cut announcement on October 29 turned out to be a “sell-the-news” scenario for the crypto market.
Ethereum ETH $3 784 24h volatility: 4.9% Market cap: $456.79 B Vol. 24h: $41.56 B price has lost the $4,000 support, dropping another 3% in the last 24 hours, in what analysts believe to be a classic bear trap. On the other hand, spot Ethereum ETF flows have turned negative again.
After trying hard to hold the ETH price above $4,000, bulls have once again given up to the bearish pressure as the largest altcoin falls 3% today.
Coinglass data also shows that the ETH futures open interest dropped 2.7% to $46 billion.
Crypto analyst Ted Pillows noted that ETH price has once again fallen below the key $4,000 support level, even after several major macroeconomic developments that were expected to boost market sentiment.
https://twitter.com/TedPillows/status/1983812477646467081
In the last 24 hours, there have been some major macro developments, such as the 25 bps Fed rate cut, the Fed’s decision to end quantitative tightening (QT) and shrink its balance sheet by December 1, and renewed U.S.-China trade talks.
The analyst suggested two possibilities: “Either this is a classic bear trap, or the crypto market is headed significantly lower.”
Although Ethereum has been facing significant volatility recently, another market analyst, IncomeSharks, noted that it must hold above $4,000 to keep the bull momentum intact.
However, according to the chart shared by the analyst, if ETH falls below this level, it could decline toward the lower band near $2,200, as shown below.
https://twitter.com/IncomeSharks/status/1983628001712730186
The spot Ethereum ETFs in the U.S. saw their flows flip to the negative territory after strong inflows for the first two days. The total flows on October 29 were a negative $84 million.
Fidelity’s FETH contributed to the most outflows at $69.5 million, followed by Grayscale’s ETH at $16.2 million.
On the contrary, BlackRock’s ETHA saw positive inflows at $21.4 million, as per data from Farside Investors.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
