Ethereum seeks a floor price as traders started taking profits, after the Fed interest rate cuts.
Ethereum crashed below the $4,000 level after the Federal Reserve announced interest rate cuts. With the interest rate cut already absorbed into the prices, the ETH traders did not see a point in holding their ETH longer. With no hopes of their profit margin expanding, they started to sell the token.
Ethereum is bearish on the weekly and daily charts
As the market started selling ETH, the prices crashed from above $4,000, and it is currently trading at $3,883, after losing more than 3% within the last 24 hours. The trading volume of Ethereum increased by more than 5% and reached $40 billion.
Ethereum is bearish on both charts– the 24-hour chart and the weekly chart. The token is making lower lows and lower highs as it still tries to find its floor price. The next level that ETH would be looking to land on will be $3,750.
ETH’s strong start turns into hard crash
On the derivatives front, just when the traders got started with buying the ETH ETF for two days, it hit a wall. From Monday’s $133 million inflow, the funds kept flowing, and it reached $246 million the next day, after which traders lost interest in ETH ETFs. Today, money is flowing out of the fund, and about $80 million has moved out.
On the daily chart, ETH is trading inside a bull flag. When a bull is spotted on the chart, it often will break out and reach a higher price ($6,000), which is equal to the length of the flagpole.
However, the bull flag is not fully formed, so we’ll get into the bull flag and see where ETH is. As shown in the chart above, ETH is currently being supported by the $3,875 level. Since ETH is continuing its zig-zag pattern of rebounding off the upper and lower trendline, the falling prices of ETH, which are at the middle of the bull flag, will continue till it hits the lower trendline at $3,750.
Once it hits the lower trendline, it will once again ricochet and head towards the upper trendline, where it will need to overcome the 50-day moving average at $4,102. After ETH completes the pattern, $6,000 is easily reachable.
