- ETH/BTC as a Trend Reversal Indicator
- Volume Indicators Imply Seller Exhaustion. Will Prices Rise?
After the Federal Open Market Committee (FOMC) meeting indicating a slowing economy, Bitcoin (BTC) and Ethereum (ETH) have reclaimed key resistance levels.
This situation prompts questions about whether ETH, currently at a five-year low against BTC, could outperform Bitcoin in a potential market rebound.
## Market Dilemma: Execution or Speculation?
Despite concerns over tariff impacts, the Federal Reserve held the borrowing rate steady at 4.25%-4.5%. Markets reacted positively, speculating that the Fed might enact two rate cuts this year due to easing inflation and tight labor market pressures, possibly leading to more accommodative policies.
Increased liquidity expectations fueled a risk asset rally. Bitcoin surged by 5.02%, surpassing the $85k resistance level, while Ethereum rose 6.45%, regaining the $2k mark after consolidation. The 1-day ETH/BTC MACD indicator turned bullish, with trading volume reaching a two-week high, indicating a possible shift toward Ethereum.
Nevertheless, maintaining this trend is uncertain. The volatility post-FOMC has complicated the confirmation of resistance zones as lasting support.
## ETH vs. BTC: Who Will Lead the Next Market Recovery?
Fundamental factors are essential for confirming the trend. As ETH reclaimed the $2k mark, inflows suggested a potential market bottom.
On-chain data reveals that Donald Trump’s World Liberty Financial has resumed ETH buying, transferring 25 million USDC to a new multi-sig wallet and purchasing 4,468 ETH for $10 million at $2,238.
Concurrently, retail demand rose at $2,059, leading to the largest ETH exchange outflow in two weeks with 139k ETH leaving exchanges.
Conversely, BTC ETFs noted four days of consecutive net inflows, reinforcing Bitcoin’s current price as a strong buying opportunity. However, for Ethereum to establish a dominance, the ETH/BTC pair must break the resistance at $0.025, supported by consistent capital rotation from BTC to ETH.
At present, Bitcoin’s robust fundamentals draw long-term holding confidence, while Ethereum’s recovery depends on reclaiming the $2.5k resistance. The market remains volatile due to speculation, and a failure to maintain key support may put Ethereum’s critical $2k level at risk.
- Volume Indicators Imply Seller Exhaustion. Will Prices Rise?
ETH vs BTC: Can Ethereum outpace Bitcoin in the next market rally?
Greed and Fear Index
Note: The data is for reference only.
Fear
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