Ethereum Reclaims $2500 After Fed Pivot: Analyst Cautious About ETH/BTC Bottom

Market Reactions to ETH’s Recovery

Following last week’s Federal Reserve pivot, Ethereum (ETH) managed to climb back above $2500, showing signs of recovery. This positive momentum also resulted in a boost for the ETH/BTC pair, indicating a potential shift in relative performance.

Evaluating the ETH/BTC Pair

Analyst Benjamin Cowen remains cautious about the strength of ETH and the potential bottom for the ETH/BTC pair. Cowen suggested that a crucial factor in determining the bottom would be if the pair could reclaim the 50-day Moving Average (MA).

Historical Trends and Predictions

Cowen referenced historical trends from 2016 and 2019, highlighting that previous bottom formations for ETH/BTC occurred after the pair crossed above the 50-day MA. This indicator could signal a shift towards bullish momentum.

Whale Activity and Exchange Flows

Despite the positive price action, some whales have been selling off portions of their ETH holdings. Recent data from Spot On Chain revealed a notable sell-off of 15K ETH worth $38.4 million on Kraken. However, overall exchange netflow has tapered off, indicating a decrease in sell pressure across centralized exchanges.

US Investor Interest and Market Sentiment

Increased demand for Ethereum among US investors, as shown by the Coinbase Premium Index and positive ETH ETF flows, has contributed to the ongoing recovery. However, the sustainability of this recovery will depend on market sentiment post the Fed rate cut.

Conclusion

As ETH continues its recovery journey, the focus remains on key indicators like the ETH/BTC pair’s performance and market dynamics. Analyst insights and whale activity play a significant role in shaping the narrative for Ethereum’s price action in the near future.