Last night the Federal Reserve cut interest rates, but Ethereum flinched! Should we buy the dip or run away now?
Last night the Federal Reserve cut rates again by 25 basis points, as expected, but this time it was different—Powell spoke of rate cuts while his expression suggested rate hikes. The dot plot indicates there may only be one cut next year, which the market interpreted as "hawkish easing." ETH surged to resistance but then softened, dropping back to around 3250.
Speaking of which, a key level must be mentioned: 3220. If it falls below here today, the trend could completely turn bearish, with the next support at 2960, and further down at 2620. So today’s focus is on whether 3220 can hold.
Looking at the address known as the “BTC OG insider whale,” they have made big moves again, increasing their long position by 40,000 ETH, with a total position close to $400 million. This person accurately shorted BTC at the end of September, making nearly $100 million, and now they are heavily betting on ETH, clearly well-prepared. However, their liquidation price is at 2234, which is still far off, but if market sentiment collapses, no matter how large the position, it won't withstand a chain liquidation.
My view is: in the short term, ETH is under pressure from the Federal Reserve's hawkish stance, combined with technical resistance near 3350, making upward movement difficult. If it breaks below 3220 today, I would first look to short towards 2960 before finding an opportunity. Until it breaks, one can try a light long position, but be sure to set a stop loss.
What should retail investors do now?
Don't rush in blindly just because there’s a rate cut. The market is now following the logic of "expectations materializing + hawkish guidance," and ETH needs time to digest. If your position is heavy, reduce some near 3220, and if it breaks, decisively run away. If your position is light, wait for a confirmed break before buying in batches, or wait for it to stabilize above 3280 before considering short-term longs.
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