At the start of mid-August, the Ethereum price has held steady above $4K after experiencing a price rejection near $5K. As September progresses with a recovery, the altcoin has overcome considerable challenges, raising the chances of exceeding the $5K threshold. Nonetheless, two crucial elements continue to be vital for a strong upward trajectory.
In their recent update, the only significant resistance is at $4.8, with bulls having the opportunity to surpass it if they manage to protect the $4500 level. “The crucial levels are maintaining $4,500 and then $4,650 to pave the way to $5,000. ETH seems ready to make a move.” However, we noted that Solana has surpassed ETH by more than 15% this month and may pose a challenge to ETH’s momentum. A negative indicator has surfaced with a drop in spot ETH ETF inflows. Analyst JA Maartun indicates that the institutional momentum driving ETH since May has significantly decreased.
Recently, the sluggish performance of ETH funds has contributed to a decline in the ETH/BTC ratio, highlighting that BTC has outperformed ETH in the latest market trends. If BTC and SOL lead the next phase of the rally, the ETH uptrend might proceed at a slower rate. Nonetheless, experts noted, “It has taken advantage of recent vulnerabilities and accumulation, yet there may still be a strong rebound ahead.” Recently, the CPI has demonstrated an upward trajectory, steadily increasing since September 9th. This suggests that U.S. retail investors have been accumulating the altcoin in expectation of the Fed’s decision on interest rates. In the past, a rise in the CPI has demonstrated a significant positive relationship with surges in ETH. In simple terms, an increase in U.S. retail interest often results in a notable rise in ETH prices.
In light of the upcoming Fed rate decision, a rally fueled by a liquidity search might approach $4250, where $2 billion in leveraged longs could act as a price magnet. To the north, the bulls encountered no obstacles past the $5K threshold. The Fed’s rate decision may influence the momentum of SOL and BTC, possibly eclipsing ETH’s movement, but we will have to wait and see.