Ether (ETH) has shown resilience, rising 2.5% in the past 24 hours to trade at approximately $2,434. A significant factor in this upward movement is the cryptocurrency's robust support at the 200-week simple moving average (SMA), currently positioned at $2,298. The 200-week SMA serves as a crucial indicator for long-term momentum; a price above this level generally signals an uptrend.The recent increase in Ether’s value was catalyzed by the U.S. Federal Reserve's decision to cut interest rates by 50 basis points, reducing the target range to between 4.75% and 5.00%. This monetary easing has stirred positive sentiment in the markets, leading to increased buying activity in cryptocurrencies.
Notably, Ether has successfully bounced off the 200-week SMA several times this month, including during a sell-off on August 5, which was largely driven by a yen carry trade unwind. This support level has remained intact through much of September, providing a strong foundation for potential future gains.
Meanwhile, Bitcoin (BTC) is trading around $62,000, marking its first higher low since reaching an all-time high in March. This upward trend is indicative of constructive price action, though traders remain cautious, anticipating that the rally may be temporary.
For Bitcoin to sustain its bullish momentum, it will need to overcome the significant resistance level at $65,000, which would establish a new higher high. Additionally, Bitcoin is making efforts to reclaim its short-term holder (STH) realized price of $61,998, a critical threshold that reflects the average cost for coins moved within the last 155 days. Successfully maintaining a price above this level could signify a more robust continuation of the bull market.
Looking ahead, macroeconomic factors are poised to influence the price movements of both Bitcoin and Ether. On September 20, Japan is scheduled to release inflation data, with predictions of slightly higher year-over-year figures for both headline and core inflation, as noted by Trading Economics. Furthermore, the Bank of Japan (BoJ) is expected to announce its interest rate decision, likely maintaining the current rate at 0.25%. These developments could introduce volatility into the crypto markets, particularly as global monetary policies shift.
The relationship between the Japanese Yen and Bitcoin is particularly noteworthy; a weakening Yen could bolster Bitcoin’s price, while a strengthening Yen may have the opposite effect. In parallel, the Hong Kong Monetary Authority (HKMA) mirrored the Fed's actions by cutting its base rate by 50 basis points to 5.25%, further highlighting the interconnectedness of global monetary policies.
In another significant development, Bitcoin ETFs experienced their first outflow since September 11, totaling $52.7 million. This outflow was largely attributed to Ark's ARKB, which saw $43.4 million withdrawn, alongside Grayscale's GBTC and Bitwise's BITB. Total inflows into Bitcoin ETFs remain substantial at $17.4 billion, indicating that while there may be short-term volatility, long-term interest in Bitcoin remains strong.
As both Bitcoin and Ether navigate these critical technical levels, macroeconomic conditions in Japan and the U.S. will play a pivotal role in shaping their price trajectories in the coming days. Investors will be closely monitoring these developments, as they seek to understand the potential implications for the broader cryptocurrency market.
September 2024, Cryptoniteuae