Ethereum Bull Flag Flies High as Market Sees 2% Rebound
Ethereum's price surged nearly 2% over the past 24 hours as the cryptocurrency market recovers from the Federal Reserve's latest interest-rate decision.
The $ETH rebounded from a low of $2,370 on Wednesday and approached $2,470, indicating traders viewed the rate increase as largely priced in.
Markets are pricing in an almost 90% chance of at least one additional Fed rate increase by the December meeting, according to FedWatch data.
Institutional demand through US spot Ethereum exchange-traded funds has weakened, with investors withdrawing a combined $405.7 million from the products over the last three days.
The continuous outflows could be tied to investors worried about another rate hike, which generally makes risk assets less attractive while strengthening returns on cash and government bonds.
However, Ethereum's post-meeting recovery indicates that bearish positioning may have become excessive once the anticipated hike was confirmed.
A bullish crossover in trading volume data could be signaling a potential rally, with three previous occurrences coinciding with strong $ETH advances.
Ethereum's daily chart continues to display a possible bull flag after buyers defended the $2,400 support level.