Bitcoin, Ethereum Price Weekly Outlook: Fed Dovish Pivot Reignites Bullish Momentum

Bitcoin (BTC) and Ethereum (ETH) kicked off the week with renewed bullish momentum, driven by a wave of macroeconomic and regulatory tailwinds.

The Federal Reserve’s decision to hold interest rates steady and signal potential rate cuts later in 2025 provided a key catalyst, boosting investor confidence across risk assets.

This dovish tilt, paired with looser liquidity expectations and a string of positive crypto developments—from corporate BTC purchases to legal wins—helped lift both flagship cryptocurrencies from recent lows.

As the market gears up for another data-heavy week, traders are closely watching whether this recovery marks the beginning of a broader trend or a temporary relief bounce.

What Happened in Bitcoin, Ethereum Markets Last Week

Bitcoin and Ethereum posted notable gains last week, buoyed partly by the Federal Reserve’s March 19 policy update.

The Fed held interest rates steady at 4.25-4.50% and reaffirmed its projection for two rate cuts in 2025, easing investor concerns about tighter monetary policy.

The market interpreted the decision as moderately dovish, sparking renewed risk appetite. Bitcoin surged nearly 4.30% to a weekly high of $87,470. Ethereum followed suit, climbing 6.30% to cross above the $2,000 mark.

Looser liquidity conditions further supported the rally as the Fed announced a slower pace of quantitative tightening starting in April.

Other key events in the crypto market include:

• Metaplanet purchased $12.6 million worth of Bitcoin, expanding holdings to 3,350 BTC after appointing Eric Trump to the advisory board.
• Fidelity filed for Ethereum-based US Treasury fund ‘OnChain.’
• MicroStrategy hinted at a $21 billion Bitcoin purchase.
• Trump called his namesake memecoin the “greatest of them all,” leading to a price explosion.
• Senator Lummis proposed that the U.S. sell gold to buy 1 million Bitcoin over five years.
• SEC confirmed Bitcoin and proof-of-work mining are not securities under U.S. law.
• TON Foundation raised $400 million via a token sale.
• SEC dropped its appeal against Ripple.
• Standard Chartered slashed its Ethereum 2025 price target to $4,000, citing structural decline and L2 revenue drain.

Key Market Events to Watch This Week

Recent activity across key volatility indicators like SKEW, VIX, and VVIX points to a cooling in hedging demand.

Notably, put option buying is slowing, suggesting that investors may be less concerned about extreme downside risks. If this trend continues, it could signal the formation of a near-term bottom in risk assets—including Bitcoin and Ethereum.

However, any recovery is more likely to resemble a gradual “U-shaped” bottom rather than a sharp “V-shaped” rebound.

Next week brings a wave of potentially market-moving economic data, including:

• Purchasing Managers’ Index (PMI)
• Consumer Confidence
• Durable Goods Orders
• GDP (final Q4 print)
• Personal Consumption Expenditures (PCE) inflation report

These data points will be critical in gauging the health of the U.S. consumer, a key pillar of economic stability. They will help markets assess whether the new trade policies are beginning to stoke inflation.

The ongoing tariff narrative adds another layer of uncertainty. Any escalation or de-escalation in trade tensions could directly impact investor sentiment, risk appetite, and, consequently, Bitcoin and Ethereum price action.

Bitcoin, Ethereum Weekly Technical Analysis

Bitcoin and Ethereum are showing signs of recovery as broader market sentiment steadies following the Federal Reserve’s dovish tilt last week. Both assets posted gains, and their respective charts suggest the potential for short-term upside, guided by key Fibonacci levels and moving averages.

BTC/USD Eyes a Move Back Toward $95K

Bitcoin closed the week at $87,061 as bulls defended the lower trendline of a rising channel stretching from late 2022. The 50-week EMA near $77,722 was a key dynamic support, cushioning the recent dip and allowing BTC to bounce.

From a Fibonacci standpoint, BTC is rebounding from the 0.618 Fib retracement (~$81,581) of the 2021 high to the 2022 low. If momentum continues, Bitcoin could aim for the $95,000–$101,987 zone, which aligns with the top of the ascending channel and the 1.618 Fib extension level—a common target in bullish continuations.

However, the RSI at 59.14 shows neutral-to-moderate strength, and bulls will need to push through the psychological $90K resistance to confirm further upside. Failure to do so could result in sideways consolidation above the $81K–$85K support region.

Ethereum Attempts Bounce from Oversold Territory

Ethereum closed the week at $2,075.5, gaining over 3.40%, as it attempts a rebound from weekly oversold conditions. The RSI stands at 44.89, gradually climbing from a low of 37.88, suggesting that downside pressure may be easing.

Price action bounced just above the 0.236 Fib retracement (~$1,820) of the full bull cycle move from the 2020 low to the 2021 high. ETH is now confronting resistance near the 200-week EMA at $2,282, with further upside capped by the 50-week EMA at $2,794.

If bulls reclaim the $2,280–$2,400 range, Ethereum could set its sights on the $2,870–$3,340 resistance zone, marked by the 0.5 and 0.618 Fib levels. On the downside, holding above the $1,820 support will be crucial to avoid retesting the $1,500–$1,600 range.