Can Ethereum Rally Before the Fed’s Liquidity Boost?
Can Ethereum's Support at $1,861 Hold Strong?
Ethereum (ETH) has shown resilience, holding firm above its key daily support level of $1,861 for the past two weeks. After recovering nearly 7% last week, ETH currently hovers around $1,980. If this support holds, Ethereum could extend its rally to retest its March 7 high of $2,258.
Technical Indicators Signal Strength
The Relative Strength Index (RSI) on the daily chart is approaching the neutral 50 level, signaling fading bearish momentum. However, a sustained recovery requires the RSI to move above 50. The Moving Average Convergence Divergence (MACD) indicator flashed a bullish crossover last week, suggesting an uptrend. Additionally, increasing green histogram bars above zero indicate strengthening bullish momentum.
However, if ETH breaks below $1,861, the next support sits at $1,700, where further downside risk could emerge.
Read Ethereum Price Prediction for more detailed insights
Is Altcoin Season Approaching?
Crypto analyst Nicholas Gambardello highlights the connection between Federal Reserve liquidity expansion and altcoin market performance. He points out that past liquidity expansions led to Bitcoin dominance declines, potentially signaling an upcoming altcoin season. With the Fed expected to slow balance sheet reductions in April, liquidity could re-enter the crypto market.
Gambardello also sees Ethereum forming a macro bottom. The asset is in a “historical buy zone” based on its two-year moving average, while the monthly RSI signals a bottoming-out phase. A key busted pattern suggests ETH could soon move upward after its recent pullback.
Also Read: AIOZ Price Prediction 2025 - 2030
Institutions Are Betting Big on Ethereum
Institutional adoption of Ethereum continues to rise. Fidelity Investments is set to launch “OnChain,” a tokenized share class of its Treasury fund on Ethereum. Meanwhile, BlackRock’s ETH holdings have surpassed $1 billion, reinforcing Ethereum’s dominance in the $4.78 billion real-world asset (RWA) tokenization market.
With technical strength and increasing institutional interest, Ethereum’s bullish momentum could extend, making the next few weeks critical for its price action.