ETH Breaks Above Resistance as Traders Eye Federal Reserve Policy
Ethereum (ETH) has surged to a new all-time high near $4,890, driven by growing optimism that the U.S. Federal Reserve could introduce a rate cut in September. The move marks one of ETH’s strongest weekly rallies in over a year, as buyers extended momentum from key support levels.
On the weekly chart, ETH shows a clean breakout above major resistance at $4,600, an area that had capped gains since 2021. The current rally comes after Ethereum successfully defended the long-term support zone around $1,000–$1,100, which previously acted as a bottom during two major market cycles.
The next significant barrier lies between $5,000 and $5,200, highlighted by the red resistance band on the chart. A decisive close above this region could open the door for an extended run toward $6,000. On the downside, immediate support has shifted upward to $3,600–$3,800, providing a cushion should profit-taking emerge.
“Ethereum breaking into new highs while the Fed signals easing is a powerful confluence for risk assets,” one market strategist noted. “The $4,600 breakout is technically significant, as it confirms a long-term reversal pattern from the 2022 lows.”
The move underscores how monetary policy shifts directly impact crypto markets, with Ethereum emerging as one of the strongest performers in anticipation of looser financial conditions. Rising trading volumes and increased institutional positioning add weight to the bullish case.
For now, Ethereum’s ability to hold above $4,600 will be crucial in maintaining momentum, while traders keep a close eye on macroeconomic developments that could further fuel the rally toward new milestones.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.