Key takeaways
- Ether reclaimed the $4,600 level a few hours ago after the Fed cut its benchmark interest rate.
- The leading altcoin may soon test resistance at $4,800 amid strong on-chain indicators.
Ether reaches $4,600 as market conditions improve
Ether, the second-largest cryptocurrency by market capitalization and the top altcoin, has risen more than 1% over the past 24 hours. That move pushed Ether to $4,600 a few hours ago, although it has since pulled back slightly to around $4,580.
The rally followed the Federal Reserve’s decision on Wednesday to lower interest rates by a quarter percentage point. Fed Chair Jerome Powell said there was no basis for a larger cut, defending the timing of the decision to reduce rates now.
On-chain Ethereum (ETH) data also paints an optimistic picture, indicating potential for further gains. The Ethereum network is seeing increased whale demand, reduced selling pressure, reviving network activity, and a growing stablecoin supply. These positive signals suggest strengthening fundamentals for ETH.
ETH eyes $4,800 as momentum indicators turn bullish
The 4-hour ETH/USD chart has turned more constructive following Ether’s recent gains. Momentum indicators have shifted into bullish territory as the market has flipped green, pointing to the likelihood of further upside in the near term.
A relative strength index (RSI) reading around 54 indicates buyers have reclaimed control of the market. MACD lines have also crossed into bullish zones. If this trend holds, Ether could target resistance near $4,778 and may attempt to reach $4,800 in the short term. To surpass its current all-time high of $4,956, however, broader market support would be required.
If the market undergoes a correction after this rally, ETH may retest the recent support level near $4,427. Failure to hold that support could lead to a deeper decline toward $4,202. Traders should watch on-chain metrics and broader macro conditions for confirmation of either continued strength or a reversal.