Ethereum Tests Key Support Amid Cautious Market Conditions
Ethereum's price has tested key support at $2,370 after days of pressure on risk assets. The market is cautious ahead of the September 4 U.S. jobs report, which could impact the Federal Reserve's rate hike expectations. The current probability of a Fed rate hike in September stands at around 66%.
The U.S. spot Ethereum ETFs recorded $48 million in net outflows on September 2, ending a streak of 12 consecutive trading sessions with positive flows. This comes as the market is pricing in a higher likelihood of a strong jobs report and potentially more hawkish Fed expectations.
Ethereum has formed a golden cross on its daily chart, which is technically a bullish signal but carries significant lag. The medium-term direction will depend on whether Ethereum holds onto $2,370, as a loss of this support would shift the focus toward $2,200.