Key highlights
- ETH is priced above $4,300, showing an increase of less than 1% in the last 24 hours.
- Market attention is on Powell’s address at Jackson Hole later today.
Ether shows strength despite bearish market trends
The cryptocurrency market has encountered volatility since the start of the week, with more fluctuations anticipated in the coming hours. Traders are preparing for potential shifts ahead of Federal Reserve (Fed) Chair Jerome Powell’s remarks at the Jackson Hole Symposium.
Bitcoin is trading around $113k while Ether is priced above $4,300, with a rise of less than 1% in the last 24 hours. Ether’s robustness is attributed to a recent report from JPMorgan indicating that spot ether exchange-traded funds (ETFs) garnered $5.4 billion in July, matching bitcoin ETFs. Conversely, Bitcoin funds have experienced modest outflows, whereas ether vehicles continue to attract investment.
JPMorgan also highlighted that the SEC’s approval for in-kind redemptions for ether ETFs is likely to reduce costs, enhance liquidity, and strengthen Ether’s competitive stance against Bitcoin.
Ether might drop below $4,200 if Powell’s speech is hawkish
The FOMC minutes released on Thursday indicated a hawkish stance from the Federal Reserve, with analysts not expecting the central bank to lower rates next month. The performance of the market in the short term may hinge on Powell’s remarks later today.
The ETH/USD 4-hour chart reflects bearish trends, as Ether has decreased by 7% over the past week. The RSI at 51 reveals a neutral stance, while the MACD lines indicate a bearish undertone.
As of this moment, ETH is valued at $4,314. If the daily candle closes above the $4,232 support level, ETH could further its recovery towards a resistance point of $4,488. A sustained bullish trend may lead it to target its yearly peak of $4,788.
However, with the overall market trending downward, Ether could undergo a correction if it fails to maintain its daily support at $4,232, possibly extending its decline towards a subsequent support level of $3,946.
