- Ethereum price rebounds from a weekly low, challenging a four-day downtrend as markets brace for the FOMC.
- The middle Bollinger Band triggers ETH recovery amid modestly bullish momentum indicators.
- ETH bulls face fewer obstacles than bears, eyeing a clean run past $4,830 to renew ATH, with $3,190 being a crucial support.
- A short-term bearish triangle can restrict ETH moves within a broad bullish trend.
Ethereum (ETH) price jumps back to $4,510 early Wednesday, mildly bid while challenging the previous four-day loss after hitting the weekly low, as traders prepare for the key U.S. Federal Reserve (Fed) Interest Rate Decision.
Apart from the pre-Fed consolidation, the middle Bollinger Band (BB) and modestly bullish signals from the Directional Movement Index (DMI) and Moving Average Convergence Divergence (MACD) momentum indicators also underpin the ETH’s rebound.
Meanwhile, an increase in trading volume, combined with a recovery in the market capitalization (market cap), also tempts Ethereum buyers despite sluggish markets. According to Santiment, ETH’s daily trading volume rises from $32.76 billion to $34.56 billion, while the market cap rebounds from its weekly low to $548.49 billion.
Elsewhere, the Ethereum Foundation’s preparations for keeping the ETH at the core of future Artificial Intelligence (AI) driven economy, and the upbeat institutional rush, keep the second-largest crypto on the bull’s radar.
Also read: Ethereum Foundation Launches dAI Team to Power AI Agent Economy
Still, a five-week ascending triangle and fears of facing “buy the rumours, sell the news” reaction to the Fed’s potential rate cut keep short-term sellers hopeful, even as the long-term outlook stays bullish.
Ethereum Price: Daily Chart Points To Consolidation
Ethereum bounces off the middle Bollinger Band (BB) within a five-week ascending triangle, currently between $4,360 and $4,830.
The ETH recovery also gains support from an impending bullish crossover on the MACD. With the DMI’s D+ (Upmove, blue) line being closer to the 25.00 neutral level, as well as above the ADX (Average Directional Index, red) and the D- (Downmove, orange) lines. It’s worth noting that the D- (orange) line is at the bottom with a 17.00 reading, suggesting weak downside momentum.
With this, the altcoin is likely to extend the latest recovery towards the upper BB hurdle of $4,678. However, the quote’s further upside appears to be challenging, as multiple hurdles since August, forming part of the triangle, could challenge the bulls around $4,768-$4,830.
Beyond that, the all-time high (ATH) of $4,954 and the $5,000 psychological magnet will gain the Ethereum buyer’s attention.
Alternatively, the middle BB level surrounding $4,419 precedes the stated triangle’s lower boundary of $4,360 to restrict short-term ETH downside.
That said, a clear break of $4,360 could trigger a theoretical fall targeting $3,600, with the 50-day and 100-day Exponential Moving Averages (EMAs), respectively near $4,213 and $3,770, acting as intermediate halts along with the lower BB support of $4,160.
Notably, the 200-day EMA and an ascending trend line from early April, near $3,315 and $3,190 in that order, appear to be tough nuts to crack for the Ethereum bears before taking control.
Ethereum Price: Four-Hour Chart Lures Sellers
On the four-hour chart, the 100-bar EMA offers immediate support to the ETH near $4,467, while the 200-bar EMA adds strength to the stated triangle’s bottom surrounding $4,360.
Notably, the previous resistance line from late July, close to $3,985, acts as an additional downside filter.
It should be observed that the MACD conditions are slightly more downbeat on the four-hour chart, while the DMI’s ADX (Red) and Downmove (D-, Orange) remain firmer than the Upmove (D+, Blue) line, suggesting short-term bearish bias among the sellers.
Conclusion
Ethereum is likely to carry its gradual short-term downtrend, despite the latest rebound, amid mixed momentum and Fed fears. However, $4,360 is the key support to watch for determining the altcoin’s further downside. Hence, the ETH traders should remain cautious with looming short-term downside risks, even if its broad uptrend is likely to prevail.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, XRP Rally as Markets Bet Big on FOMC Rate Cuts
