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Ethereum Rally Shows Signs of Fatigue Amid Exchange Inflows and Fed Liquidity Constraints

Recent market activity indicates Ethereum’s upward momentum may be weakening, fueled by significant exchange inflows and subdued derivatives trading. Nearly 100,000 ETH (valued around $250 million) entered Binance in two concentrated waves, signaling potential profit-taking or heightened investor caution.

The U.S. Federal Reserve’s ongoing liquidity reductions have tightened capital availability, shrinking net liquidity from $6.2 trillion to $5.84 trillion. This macro shift continues to pressure Ethereum’s price dynamics alongside technical indicators showing neutral-to-mixed signals. ETH currently trades near $2,451 – just below the $2,455 resistance zone – with a standoffish RSI reading of 48.9 and contradictory MACD patterns.

Market participants are advised to closely monitor exchange reserves and derivatives behavior for directional clues. Technical thresholds suggest potential upside toward $2,622 if ETH breaks above $2,500, while failure to hold the $2,287 support level could trigger deeper corrective movement. Caution prevails as these factors combine to increase near-term volatility risks.

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