Ethereum's price movement today has been influenced by a combination of macroeconomic factors and technical patterns. The cryptocurrency has been under pressure due to rising U.S. bond yields, which have surged amid a hawkish Federal Reserve stance. This has led to increased investor caution, as higher yields suggest that the Fed may maintain its tight monetary policy to combat inflation. Additionally, Ethereum has been experiencing outflows from spot exchange-traded funds, with significant withdrawals reported earlier this week. These outflows have coincided with a rise in exchange balances, indicating that investors might be liquidating their holdings.
Despite the current downturn, some analysts remain optimistic about Ethereum's potential for a bullish reversal. The cryptocurrency is reportedly forming an inverse head and shoulders pattern, a classic bullish signal, which could pave the way for a significant price surge if confirmed. Crypto analyst Rekt Capital noted that Ethereum is developing resistance just below the $4,000 mark, which could act as a neckline for this pattern. If Ethereum manages to break above this resistance, it could target new highs, potentially reaching the $7,000 range as suggested by analyst Miky Bull.
Ethereum's price has seen a slight decline today, with a 0.50% decrease, bringing it to $3,249.89. The cryptocurrency reached a high of $3,268.82 earlier in the day but has since settled at its current level.