Key Points
- Ethereum reclaimed $2500 last week, boosting the ETH/BTC pair.
- The ETH/BTC bottom could remain elusive unless the pair reclaims the 50-day Moving Average (MA).
Ethereum [ETH] managed to reclaim the $2500 mark after last week’s Fed pivot, which also led to a boost in the ETH/BTC pair. Despite the launch of US spot ETH ETF in Q3, the market has shown a diminished interest in Ethereum. The altcoin suffered a 25% decline in Q3 and hit a record low on the ETH/BTC pair, which evaluates the altcoin’s performance relative to Bitcoin [BTC].
ETH Recovery
However, the altcoin was able to regain $2500 after rallying for three consecutive days. This was triggered by last week’s Fed pivot. The recovery was also marked by a net inflow of $8.2 million in the past two trading days for US spot ETH ETFs.
Crypto analyst Benjamin Cowen expressed caution about the strengthening of ETH and the potential bottoming of the ETH/BTC pair. According to Cowen, the ETH/BTC bottom might remain elusive if the pair fails to reclaim the 50-day Moving Average (MA), referring to trends from 2016 and 2019.
Whales and ETH
On the other hand, some whales have been profiting from the recent appreciation of ETH’s price. Spot On Chain reported that a familiar whale sold 15K ETH worth $38.4 million on Kraken. This address has made two other sell-offs in Q3, each leading to a slight decline in ETH.
However, despite the recent spike, the overall exchange netflow has tapered off. This suggests that sell pressure across centralized exchanges has moderately eased, potentially allowing the ETH price to continue its recovery.
Increased demand for Ethereum among US investors has been noted, as shown by the Coinbase Premium Index and recent positive US ETH ETF flows. However, it is still uncertain whether the ETH recovery will persist after the excitement linked to the Fed rate cut subsides.
