Ethereum price rebounded to $2470, with a bullish flag target at $3,300

Ethereum rebounded to $2,470 after the Federal Reserve raised interest rates, with bullish patterns pointing to the $3,300 target

In the past 24 hours, Ethereum (ETH) has recorded a nearly 2% gain. As the Federal Reserve raised benchmark interest rates, the broader cryptocurrency market strengthened. On Wednesday, ETH rebounded from an intraday low of $2,370 and climbed to near $2,470. Traders generally believe that the high-profile interest rate hike has been fully absorbed by the market and included in prices.

Despite the market recovery, ETF outflows continue

Even if prices rebound, institutional demand for Ethereum remains weak. Investors have withdrawn a total of $405.7 million from U.S. spot Ethereum exchange-traded funds (ETFs) in the past three days, leaving monthly net inflows well below August levels. The continued outflow suggests that some participants are reducing their exposure to Ethereum, and the short-term rebound has not shaken this trend.

Analysts linked the selling to expectations of further monetary tightening because high interest rates often make risky assets less attractive compared to cash or government bonds. According to FedWatch data, the market currently believes that the probability of raising interest rates at least once by December is close to 90%. Despite the uncertainty, Ethereum's rapid rebound suggests that bearish sentiment may have overstretched after the official confirmation of the rate increase. Ethereum's recovery signs after interest rate hikes suggest sellers may be oversold and some investors are reassessing their positions in response to expected monetary tightening becoming a reality.

Bank of Japan turns, global monetary policy dynamics attract attention

The latest market developments coincided with the Bank of Japan raising its benchmark interest rate by 25 basis points to 1.25%, the second rate hike in three months. The move sent Japan's interest rates to a 31-year high, as policymakers aim to combat stubborn inflation and continued yen weakness. The move symbolizes the Bank of Japan's efforts to move away from the extreme easing policies that have defined the past three decades.

At the same time, traders began to pay close attention to technical forms to find signals for Ethereum's next move. Changes in trading volume dynamics have attracted special attention. Sanitation data shows that the seventh day trading volume is close to breaking through the 30th day trading line. In previous cases, such intersections have often been accompanied by the beginning of significant increases in ETH, although there is no guarantee that the pattern will be repeated. Technical analysts also monitor indicators such as the Relative Strength Index (RSI), which currently remains above 55-a level consistent with continued bullish momentum.

The bullish flag pattern on the Ethereum chart keeps the US$3,300 target focused

The Ethereum daily chart continues to show a potential bullish flag pattern as buyers are defending the US$2,400 support area. A similar pattern was observed during the consolidation period between April and May last year, before Ethereum hit a record high. To confirm the current bullish structure, Ethereum needs to clearly break through the upper flag boundary near $2,550. If such a breakthrough occurs, analysts suggest ETH may target a $3,300 target in the coming weeks.

However, if the key $2,550 resistance level is not cleared, Ethereum may test the $2,400 area again. A strong U.S. dollar response and the impact of higher interest rates could deepen any correction, potentially pushing ETH closer to its 200-day exponential moving average.

While many market participants are watching these technical signals, the traditional financial sector is undergoing a profound transformation. As institutions increasingly use Web3 technology to tokenize real-world assets, platforms such as 1stepSwap now allow investors to hold U.S. stocks, gold and silver directly in their crypto wallets. By automating the search for optimal pricing and eliminating the broker link, 1stepSwap and similar platforms are accelerating Wall Street's transition to blockchain-based asset management.

During market consolidation, technical indicators suggest that if resistance levels are exceeded, rising trading volumes and possible breakthroughs will serve as catalysts for further gains.