Ahead of the Federal Reserve's interest rate decision, risk assets generally entered a wait-and-see phase. Ethereum rose to $1,926 on Wednesday before falling back to around $1,890, a daily drop of about 1.5%. Bitcoin hovered around $64,000, with market sentiment remaining cautious.
ETH ETF sees net inflows for three consecutive weeks
Funding conditions continue to provide some support for Ethereum. According to SosoValue data, the spot ETH ETF recorded a net inflow of $14.53 million on the day, marking the third consecutive week of net inflows. Over the past seven days ending July 28, the cumulative net inflow was $71.17 million.
This represents a relatively strong inflow since April, indicating that institutional funds have not completely withdrawn from related products. However, prior to the Fed's decision, the new funds have not yet driven prices to break through further.
The market awaits a statement from the Federal Reserve.
The market widely expects the Federal Reserve to maintain its interest rate range at 3.50% to 3.75%. However, traders are more focused on the post-meeting remarks, especially Chairman Kevin Warsh's comments on inflation and the future policy path.
If the policy tone remains hawkish, risk assets may continue to be under pressure. The cautious stance also seen in US stocks suggests that this wait-and-see attitude is not limited to the crypto market.
- Bitcoin is currently fluctuating around $64,000.
- The Fear & Greed Index is at 29, placing it in the fear zone.
- Ethereum reached an intraday high of $1926.
Prices rebounded but then stalled.
Ethereum rebounded from its year-to-date lows earlier this month, but its short-term trend remains volatile. The article notes that the current price has fallen below a key level of the previous rebound range, indicating that while buying interest has recovered, upward momentum remains insufficient.
Overall, ETF fund flows continued to improve, providing fundamental support for Ethereum; however, before macroeconomic events materialize, the market tends to control positions and wait for the Federal Reserve to provide clearer directional signals.
