ETHUSD set to rise after descending channel breakout

ETHUSD has finally broken out of the descending channel seen on the hourly (H1) chart since the end of last week. This shift followed the Federal Reserve's (Fed) decision to lower interest rates by 0.25%, thus signaling a potential short-term trend reversal. The price has rebounded by more than 5% from yesterday's low, though there is now some local profit-taking on long positions. Nevertheless, Ethereum’s upward potential seems to be intact, with buyers likely to target $4,670 next. 

Technical indicators support the case for further appreciation. The RSI is advancing but remains outside the overbought zone, while the MACD continues to climb steadily in positive territory. On the H1 chart, ETHUSD is now trading above all major moving averages, reinforcing the bullish structure. The upward momentum is likely to persist unless the price falls back below $4,530.

Following a sell-off in late August that occurred after the asset hit a new all-time high, investors have gradually resumed accumulating ETHUSD. Since the start of fall, large holders, often referred to as whales, who possess between 10,000 and 100,000 coins, have collectively increased their holdings by 1 million coins, bringing their total to 21.39 million. Meanwhile, the daily flow of Ethereum from traders' wallets to crypto exchanges for potential sale has fallen to less than 800,000 tokens, marking the lowest since July.

In a related development, Citigroup analysts have set a year-end 2025 price target of $4,300 for ETHUSD, which is more than 6% below the current trading level. However, the bank’s experts also acknowledge a more optimistic scenario in which the cryptocurrency could advance to $6,400. The eventual outcome is expected to depend significantly on the competitive dynamic between Ethereum and Bitcoin. One key difference is that ETH holders can generate returns through staking, even without price appreciation. This feature is unavailable to BTC holders.

The following trading strategy may come into play:

Buy ETHUSD in the $4,550–$4,600 range. Take profit: $4,670. Stop loss: $4,530.