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Ethereum Price Forecast: Whales Spotted Buying $300M ETH as FOMC Meeting Kicks Off
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Key Points:
- Ethereum price hit $2,391, rising 4% within the daily timeframe on Tuesday Sept 17, as the FOMC meeting began on Tuesday.
- Ethereum whales accumulated 43,630 ETH on Sept. 15 and 81,720 ETH on Sept. 16, totaling an impressive 126,350 ETH in just 2-days.
In this article:
Ethereum Price Analysis:
Ethereum price hit $2,391, rising 4% within the daily timeframe on Tuesday Sept 17, as the FOMC meeting kicked-off. On-chain data shows how whales buying pressure could propel the next phase of the rally.
Ethereum Price Bounces 4% as FOMC Meeting Kicks Off
Since prominent assets hit new monthly peaks around Sept 13, the crypto market reverted into a brief consolidation phase as bull traders scaled back on buying pressure ahead of the next US Fed rate decision.
However, market movements observed in the last 24-hours suggests a major bullish reversal could be imminent.
On Tuesday, Sept 17, the US Federal Reserve convened for the September 2024 FOMC meeting, to arrive at monetary policy decisions for the coming month. Following month-on-month declines in Non-Farm jobs figures and CPI inflation data trending at historic peaks, markets anticipate a rate cut outcome.
More so, CME Group analysts have hinted a 100% chance of a rate cut, with 67% of investors anticipating a 475 to 500 basis points easing.
Ethereum and other leading cryptocurrencies saw sharp price surges as the FOMC meeting commenced on Tuesday.
Opening the session around $2,295, the ETHUSD chart reveals how Ethereum price climbed 3.54% within the day’s timeframe, breaking above the $2,370 mark by Sept. 17. This signals heightened sensitivity of crypto markets to macroeconomic data. The rally on Sept. 17 could indicate early bullish momentum, setting the stage for a potential breakout if the Federal Reserve confirms its first rate cut in nearly three years on Wednesday.
A rate cut could significantly bolster risk assets like Ethereum. Lower interest rates reduce borrowing costs, inject liquidity into the markets, and encourage more speculative investments. With fewer incentives to allocate capital into traditional, yield-bearing assets, investors may pivot toward higher-risk, higher-reward opportunities, such as cryptocurrencies.
Ethereum’s price action, thus, could gain further upward momentum as investors seek alternatives in a lower-rate environment, potentially pushing ETH price towards new highs.
Ethereum Whales Spotted Making Last Minute Buys Worth $300M
Historically, interest rate cuts in the USA has often led to increased capital inflows into digital assets like Ethereum. The last prolonged period of rate cut regimes between 2020 and 2021 led the new all-time highs in Ethereum price and the broader crypto market valuation.
Usurprisingly, large investors have been spotted making strategic last minute purchase to front-run another potential rally if the fed cuts rates on Wednesday.
IntoTheBlock’s Large Holder Netflow chart, tracks daily net-purchases made by wallets holding at least 0.1% of a cryptocurrency’s total supply in circulation.
Ethereum whale investors capitalized on the consolidation phase ahead of the FOMC meeting, to make large last-minute ETH purchases.
The chart above depicts how Ethereum whales acquire 43,630 ETH and 81,720 ETH on Sept 15 and Sept 16 respectively, totaling 126,350 ETH acquisitions within a frenetic 24-hour period.
Valued at the current prices of $2,370 per coin, this implies that the Ethereum whales have rapidly invested $297 million dollars, 48-hours ahead of the FOMC meeting.
The chart above highlights how Ethereum whales accumulated 43,630 ETH on Sept. 15 and 81,720 ETH on Sept. 16, totaling an impressive 126,350 ETH in just 2-days.
At the current price of $2,370 per coin, this means that whales have invested nearly $297 million, a mere 48 hours before the FOMC meeting.
This large-scale accumulation by Ethereum’s most influential investors is a strong bullish indicator. Whale purchases of this magnitude often suggest that these investors anticipate a favorable market shift.
The timing, so close to the FOMC decision, implies that whales expect the upcoming macroeconomic developments, such as a rate cut, to drive ETH prices higher as the week unfolds.
Ethereum Price Forecast: Bulls Must Reclaim $2,500 to Regain Foothold
Ethereum’s price action shows bullish momentum building after a 3% surge within the daily timeframe on Sept 17. More so, technical indicators also affirm this optimistic ETH price forecast.
First, the Bollinger Bands indicate that Ethereum is bouncing off the lower band, which currently sits around $2,218, suggesting strong support at this level. The Fisher Transform indicator, currently at 0.21, signals a potential upward trend, indicating a bullish reversal may be underway.
Immediate resistance lies at $2,392, with the next critical level at $2,567.79. Ethereum needs to reclaim these levels to fully shift market sentiment. Meanwhile, support sits at $2,218, with stronger backing at $2,100 if volatility increases.
Speculative buying is driving the recent gains, but a potential Fed rate cut could validate the bullish narrative. If the Fed cuts rates, liquidity could flood into risk assets, accelerating an Ethereum breakout. This combination of technical signals and macroeconomic tailwinds points to potential sustained gains.
Traders should watch for a decisive close above $2,500, which could spark further momentum and attract additional buying interest. A breakout above the $2,567 resistance could trigger a rapid move higher, but failure to maintain $2,218 support could stall the bullish momentu
About the Author
Ibrahim Ajibadeauthor
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.
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