The market began to pull back in mid-August, both in the US stock market and the cryptocurrency market. This was mainly due to the fact that most of the economic data released by the United States was better than expected, indicating that the US economy remained stable. This situation was not conducive to interest rate cuts. In addition, the market expected that Powell would maintain the tone of no interest rate cuts in his speech on Friday, so the aversion sentiment was strong, causing the cryptocurrency market to fall, and spot ETFs also recorded net outflows for five consecutive days.
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However, after Powell's speech on Friday, he released remarks that there would be a chance to adjust monetary policy. The market interpreted this as support for a September interest rate cut to boost the job market, so the stock market and the cryptocurrency market suddenly resumed their upward track. BTC soared directly from a low of 111,000 to 117,000 US dollars, and ETH also broke through 4,880 US dollars to a new high, with a single-day increase of nearly 15%. BNB also set a new high, and market sentiment was rekindled.
Outlook for next week: Expectations of interest rate cuts rise and the market is likely to rise
Powell's comments have dramatically shifted market sentiment, significantly increasing the probability of a September rate cut. Therefore, we anticipate a more optimistic market outlook next week. Barring any other negative news, BTC and ETH could capitalize on this momentum to reach new highs, and the weekend's performance is also worth anticipating. There will be no major US economic data releases early next week, with GDP figures expected to have a significant impact on the market on Thursday and Friday.
Bitcoin's daily chart has recently rebounded strongly after breaking below its trendline at $112,000. Therefore, we can expect a potential breakout above $117,000 and a return to its long-term upward trend. Bitcoin's current trend is relatively weak compared to other cryptocurrencies like ETH, or in other words, it's stabilizing between $113,000 and $118,000. As long as Bitcoin doesn't experience a significant price drop, the outlook for other major cryptocurrencies will likely be relatively positive.
Ethereum Price Prediction: ETH hits new high, targets $6,000
Over the past 24 hours, the Ethereum futures market saw a wave of liquidations totaling $345.16 million, with $80.27 million in long positions liquidated and $264.89 million in short positions liquidated.
Notably, this marks ETH's first all-time high since November 2021, following a strong rebound from support around $4,100 earlier this week. A close above $4,868 could confirm the formation of a bull flag pattern, opening the way for a breakout above $6,000. This target is estimated by measuring the pattern's height and projecting it from potential breakout points.
On the other hand, $4,100 remains a key support level that needs to hold to sustain the upward momentum. Currently, the RSI is approaching the overbought territory, while the MACD line is about to cross above the signal line – both of which suggest that bulls still have the upper hand.
The rally has driven net inflows into Ethereum ETFs to over $12 billion, bringing total assets to approximately $27 billion.
As of August 19, the amount of ETH held by nine Ethereum ETFs reached a record high of 6.069 million ETH, up from 4.15 million on July 8. This represents an increase of approximately 1.92 million ETH (46%) in just six weeks.
This sharp rise reflects a structural shift in how ETH is held, as more and more supply is locked up in long-term investment channels. The increasing concentration of ETH in ETFs has a number of market implications.
As a large amount of Ethereum is withdrawn from daily transactions, spot market liquidity has become increasingly thin, making prices vulnerable to large-scale transactions, including rebalancing or fund redemptions.
ETF inflows have maintained steady demand, providing a bullish backdrop. Any slowdown or reversal in ETF buying activity could trigger selling pressure, impacting overall market prices.
