Ethereum Reclaims $4,500 as Delayed US Data and Rate Cut Expectations Trigger Bullish Acceleration
Ethereum (ETH) broke through the $4,500 hurdle, hitting a two-week high of $4,580 as delayed release of major US economic data, such as the Nonfarm Payrolls (NFP) report, drove sentiment in the crypto market higher. The delay, resulting from the US government shutdown, has increased the uncertainty surrounding the Federal Reserve’s next course of action, increasing the chances of rate cuts. Coinbase analysts have indicated that deteriorating US Dollar conditions and increased expectations of rate cuts are creating a bullish climate for cryptocurrencies. With more than $1 billion in net inflows into US spot ETH ETFs and falling exchange reserves, bullish sentiment is gaining strength, though near-term resistance at the descending trendline may challenge Ethereum’s momentum. KEY LOOKOUTS • The postponement of US economic data can affect the Federal Reserve’s rate-cut plans, which would infuse crypto market sentiment. • Ethereum is tested with a crucial test at the descending trendline around $4,580, which will define the next direction. • More than $1 billion in spot ETH ETF inflows indicate increased institutional appetite and investor enthusiasm. • Even with bullish momentum, RSI and Stochastic indicators hint at potential short-term correction. Ethereum retook the $4,500 mark, buoyed by hope over delayed US economic data and heightened expectations of Federal Reserve rate cuts. The delay in the Nonfarm Payrolls report because of the government shutdown has introduced uncertainty, and speculation that the Fed will ease policy ahead of schedule has therefore been fueled. This change, in addition to a depreciating US Dollar and increasing institutional demand—demonstrated by more than $1 billion in spot ETH ETF inflows—has enhanced Ethereum’s bullish trend. Still, ETH is met with crucial resistance at a downtrend line around $4,580, where overbought technicals suggest the potential for a short-term pullback prior to any further upswing. Ethereum jumped above $4,500 as slowed US economic data and improving rate-cut expectations increased market confidence. Solid ETF inflows and a weakening Dollar underpin bullish sentiment, although resistance around $4,580 could limit near-term gains. • Ethereum (ETH) regained the $4,500 mark, hitting a two-week high of $4,580 on Friday. • Market volatility was fueled by the government shutdown delay in US Nonfarm Payrolls (NFP) data. • Increasing rate-cut prospects and a softening Dollar benefit crypto assets, analysts at Coinbase say. • Net inflows worth more than $1 billion have entered US spot ETH ETFs over the last four days, reflecting solid demand. • Whale accumulation became more aggressive as ETH holdings on centralized exchanges reached all-time lows. • Technical charts indicate resistance at a downtrend line from Aug 24, with possible upside towards $4,800. • RSI is still bullish, but the overbought reading of the Stochastic Oscillator suggests a potential short-term correction. Ethereum’s recent surge above the $4,500 level indicates renewed optimism in the crypto market as investors respond to the delay in major US economic data. The delay in the Nonfarm Payrolls release caused by the government shutdown has heightened uncertainty surrounding Federal Reserve policy, elevating the chances of rate cuts. Combined with a declining US Dollar, this has reinforced the broader narrative that digital assets have much to gain from a move towards a more dovish monetary regime. The expectations for rising rate cuts have already been factored into markets, which is usually supportive of risk assets such as cryptocurrencies, Coinbase analysts pointed out. ETHEREUM Daily Chart Price SOURCE: TradingView Ethereum’s interest remains on the rise with further support to market sentiment. Statistics indicate net inflows of more than $1 billion in US spot ETH ETFs in the last four days, a testament to growing investors’ demand for Ethereum exposure. Concurrently, on-chain information displays a striking decline in ETH balances on centralized exchanges, indicating long-term holders are accumulating. These two indicators combined indicate base demand and growing fortunes for Ethereum, as the asset continues to pick up speed in a macroeconomic environment that increasingly looks friendly to crypto markets. TECHNICAL ANALYSIS Ethereum is running into resistance at a declining trendline running from late August after breaking above the $4,500 mark. A firm breakout above here might pave the way to the $4,800 area, indicating more bullishness. On the other hand, support near $4,100 will serve as the earliest level of support, where the 100-day Simple Moving Average (SMA) would prop up prices in case of a pullback. The Relative Strength Index (RSI) continues to be higher than its neutral level, indicating buyer strength, while the reading of the Stochastic Oscillator in the overbought territory offers a chance for a short-term consolidation before Ethereum continues its upswing. FORECAST If Ethereum manages to break above the downtrendline resistance at around $4,580, it may unleash a new wave of bullishness towards the $4,800 level. A sustained push through this level could set the stage for additional advance to $5,000 fueled by robust ETF inflows, accumulation by whales, and favorable macroeconomic fundamentals in the form of a weakening US Dollar and increasing rate cut expectations. Sustained institutional demand and favorable investor sentiment could propel Ethereum to continue its short-to-medium term uptrend. On the negative side, not sustaining above the $4,500 level may cause a short-term correction towards $4,100, where Ethereum is likely to see initial support. A more significant pullback below this region might reveal the next support around the 100-day Simple Moving Average (SMA). Overbought readings on the Stochastic Oscillator also suggest possible short-term profit-taking, but general market structure remains bullish as long as ETH is above key supports.