Ethereum Price Today: $4,530
- Ethereum whales have bought over 1 million ETH since early September.
- Weekly selling has dropped from 1.8 million ETH in mid-August to 783,000 ETH now.
- ETH bulls and bears are fighting near the 20-day SMA and $4,500 resistance level.
Ethereum (ETH) shows positive signs after the Federal Reserve cut interest rates by 0.25% on Wednesday.
Ethereum’s Outlook After Fed’s Rate Cut
Ethereum investors seem hopeful for a price rise following the Fed’s rate cut. Whale demand is growing, selling pressure is low, and network activity is improving.
Whales, holding between 10,000 and 100,000 ETH, have added 1 million ETH since September started. Their total holdings now reach 21.39 million ETH. Meanwhile, smaller investors have sold some ETH.
New accumulation wallets, which have not sold any ETH, received 4.1 million ETH in September. This is nearly the same inflow as the record 4.5 million ETH seen in August, but in half the time.
Selling has slowed down. The 7-day average of ETH sent to exchanges fell from 1.8 million ETH on August 15 to 783,000 ETH, the lowest since July.
USDT stablecoin supply on Ethereum increased by $11 billion since mid-August. This shows more capital is ready to enter the market after the Fed’s rate cut.
Ethereum’s network activity is also rising. Active addresses and transaction counts have increased since mid-August.
Despite these positive signs, Ethereum’s price has stayed mostly flat for three weeks. This matches the usual slow period in the crypto market during August and September.
It is still unclear if the Fed’s rate cut will boost Ethereum’s price or cause a sell-off.
Ethereum Price Forecast: Key Support and Resistance Levels
Ethereum saw $95.4 million in futures liquidations in the past 24 hours. This includes $67.9 million on long positions and $27.5 million on short positions, according to Coinglass.
ETH is testing the 20-day Simple Moving Average (SMA) after failing to break above $4,500 on Wednesday.
If ETH falls below the 20-day SMA, it may find support near the 50-day SMA at $4,300 to $4,400. Investors bought about 1.7 million ETH in this price range recently.
The $4,000 level is another important support if the price drops further.
The Relative Strength Index (RSI) has fallen below its moving average and is near the neutral level. The Stochastic Oscillator also dropped below its midline. A further RSI decline could increase bearish momentum.
