Ethereum Price Slides 18% as Fed Uncertainty and Weak Data Trigger Heavy Outflows
Ethereum fell 18% after early October’s $4,252 high as macro uncertainty, weak US manufacturing data, and fading ETF inflows weighed on sentiment. Despite strong whale accumulation and a $380 million ETF surge in October, investors are now cautious amid risk-off trading and Fed policy doubts.
Ether update
Whale accumulation and institutional flows as mining company Bitmine Immersion Technologies purchased approximately $113 million worth of Ethereum (ETH) sparked renewed interest in Ethereum among large-scale holders in late October, taking it to $4,252.99.
Alongside this, spot Ethereum exchange-traded funds (ETFs) registered net inflows of about $380.00 million, reversing a brief period of outflows. Since then Ether slid by around 18% amid US Federal Reserve (Fed) December rate cut uncertainty, weak US manufacturing data and risk-off sentiment amid heavy outflows, both in the cryptocurrency and in ETFs. These developments come at a moment when Ethereum’s upcoming upgrade-roadmap has also started to factor into the investment thesis.
The October buzz around network improvements seems to have been short-lived, though, as macro uncertainty grips investors.
Whether Ether may convert renewed interest into sustained price action will likely depend on whether network upgrades deliver as promised, whether renewed capital inflows are seen, and how the wider crypto market responds to external impulses.
Ether bearish case
Ether is seen rapidly approaching its 10 October low at $3,447.14, a fall through which may trigger a swift drop to the April-to-November uptrend line, early August low and the 200-day simple moving average (SMA) at $3.424.20-to-$3,372.15. Immediate bearish pressure will remain in play while no rise above Sunday's $3,916.58 high occurs.
Ether bullish case
Were Ether to bounce off its 10 October low and rise above Sunday's $3,916.58 high, the mid-to-late October highs at $4,252.99-to-$4,294.03 may be revisited.
Ether daily candlestick chart
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