Breaking! How to operate ETH after the Federal Reserve cuts interest rates? 3220 is the dividing line!
Last night, the Federal Reserve cut interest rates by 25 basis points, a result that was expected by everyone. However, as soon as the dot plot was released, it directly dampened the market's spirits, suggesting that there might only be one rate cut next year. Powell's speech also leaned hawkish; while mentioning that inflation remains high and risks are rising, he also noted that the labor market is somewhat weak, but we need to look at subsequent data. The message is clear: rate cuts are possible, but don't expect a flood of liquidity!
Affected by this news, ETH surged initially, but then turned and plummeted, now hovering around 3250, clearly indicating that the bullish news has played out, and the hawkish comments frightened the market.
Let me state my opinion directly: 3220 is the dividing line for ETH's bullish and bearish outlook. If this level is broken, the trend is likely to turn bearish, with the first support level down at 2960; if it falls hard, it could reach 2620.
Looking at the indicators, the MACD dual lines show signs of weakness at high levels, and the trading volume is not keeping up. When ETH surged, the volume clearly shrank; if it breaks the key position, it might actually lead to a volume-driven decline, which is not a good signal.
So everyone needs to keep a close watch today. If ETH can stay above 3220, we can still expect some oscillation or a weak rebound, but definitely don't go all in; there’s heavy resistance around 3540 above.
If it breaks below 3220 with increased volume, don’t hesitate; reduce your positions and hedge as needed. If the trend turns bearish, you have to follow the market.
Don't let the words "interest rate cut" cloud your judgment; the market trades on expectations, and right now, expectations are weak, with liquidity not returning quickly. The most common mistake retail investors make is holding on tightly when prices drop, then chasing high when there’s a slight rebound; if the timing is off, the whole portfolio can be lost.
Take for example a friend of mine, who in a similar market environment, didn't get the timing right, chased in when he saw a slight rebound, and then the price dropped again. Not only did he not make money, but he also lost a lot. So everyone must be cautious.
If the 3220 level holds, we stay steady; if it breaks, run quickly and wait for the market to provide clearer signals. Remember, preserving your capital is key to waiting for bigger profit opportunities. Don’t blindly gamble when the market direction is unclear.
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