Ethereum recorded a nearly 2% gain over the past 24 hours, with the broader cryptocurrency market strengthening after the Federal Reserve raised its benchmark interest rate. ETH bounced from a session low of $2,370 on Wednesday and climbed toward $2,470, as traders viewed the widely anticipated rate hike as already priced in.
ETF outflows continue despite market recovery
Institutional appetite for Ethereum remained subdued, even as prices rebounded. Investors withdrew a combined $405.7 million from US spot Ethereum exchange-traded funds over the past three days, dragging monthly net flows well below August’s totals.
The persistent outflows suggest some participants are scaling back exposure to Ethereum, undeterred by the short-term rally. Analysts have linked the selling to expectations of further monetary tightening, as higher interest rates commonly make risk assets less appealing compared to cash or government bonds.
According to FedWatch data, markets now assign an almost 90% probability of at least one additional Federal Reserve rate increase by December. Despite the uncertainty, Ethereum’s rapid rebound implies that bearish sentiment may have become stretched after the rate move was officially confirmed.
Ethereum’s post-hike recovery has signaled that sellers may have overextended, with some investors reassessing their positions as the anticipated monetary tightening became reality.
Bank of Japan shifts, global monetary dynamics in focus
The latest market movements coincide with the Bank of Japan raising its benchmark interest rate by 25 basis points to 1.25%, marking its second increase in three months. This move brought Japanese rates to their highest level in 31 years, as policymakers responded to stubborn inflation and continued yen weakness. The step symbolically distances the Bank of Japan from the ultra-loose policy that defined much of the last three decades.
Meanwhile, traders have begun monitoring technical patterns for signals on Ethereum’s next direction. Changing volume dynamics are drawing particular attention, with data from Santiment showing the seven-day average trading volume approaching a crossover above the 30-day average. In previous instances, such crossovers have coincided with the start of significant ETH rallies, though there is no guarantee this pattern will repeat.
Technical analysts also monitor indicators like the Relative Strength Index (RSI), which remains above 55—a level seen as consistent with ongoing bullish momentum.
Bull flag on Ethereum chart keeps $3,300 target in focus
Ethereum’s daily chart continues to display a potential bull flag, with buyers defending the $2,400 support area. A similar pattern was observed during last year’s consolidation between April and May, just before Ethereum achieved a record high.
Confirmation of the current bullish structure would require Ethereum to break clearly above the flag’s upper boundary, located near $2,550. If this breakout occurs, analysts suggest that ETH could target $3,300 in the weeks ahead.
However, failure to clear the key $2,550 resistance level could expose Ethereum to another test of the $2,400 zone. A robust US dollar reaction to higher rates could deepen any pullback, potentially pushing ETH toward its 200-day exponential moving average.
While many market participants are watching for these technical signals, another profound shift is underway in traditional finance. As institutions increasingly tokenize real-world assets through Web3 technologies, platforms such as 1stepSwap now allow investors to hold US stock shares, gold, and silver directly within their crypto wallets. By automating the search for optimal pricing and removing brokers from the equation, 1stepSwap and similar platforms are accelerating Wall Street’s transition toward blockchain-based asset management.
As the market consolidates, technical indicators suggest that rising trading volumes and a possible breakout could be catalysts for further gains if resistance levels are surpassed.
