ETHUSD continues to consolidate near $2,500, following the pair’s powerful rally in the second half of August. Over the past ten trading sessions, Ethereum has gained roughly 37%, reaching a local peak of $2,566 before entering a flat trend. Despite the sleepy dynamic, the fundamental picture remains rather positive. Persistent capital flows into US spot ETH exchange-traded funds (ETFs) serve as the cryptocurrency’s key pillar of support. Sustained demand from major players keeps reducing the volume of tokens available on the open market, providing an additional boost after the pair’s recent rally.
However, headwinds remain in place, with the Federal Reserve’s (Fed) unclear monetary trajectory taking the lead. Investors are now pricing in a roughly 60% chance of a rate hike at the September meeting, though there is no consensus on the matter. Fresh US inflation data—due tomorrow—could become a game-changer. If the report comes in above forecasts, the Fed is more likely to lean hawkish, pushing American Treasury yields higher and weighing on cryptocurrencies.
On the technical front, ETHUSD’s powerful rally has run its course. The pair is now moving within the short-term flat range of $2,350–$2,565. Buyers continue to hold prices above $2,450, signaling that the bullish trend remains intact. The next upside target could be $2,565—an 8-month high.
The final recommendation is to buy ETHUSD at the current price of $2,480, aiming for $2,565 within a couple of weeks. To mitigate the risk in case the pair moves in the opposite direction, place a Stop Loss order at $2,400.
This content is for informational purposes only and is not intended to be investing advice.
