Jan.31-Feb.5(ETH)Weekly market recap

At the FOMC last week, interest rates remained unchanged, in line with market expectations. The labor market showed strong performance in U.S. employment report released on Friday. In an interview over the weekend, Powell said a rate cut was possible this year, but based on current economic data, it was unlikely that an interest rate cut will be imminent. CME currently shows traders believe the first rate cut this year is more likely to occur at the FOMC in May. So the market will usher in the dual benefits of BTC halving and monetary policy changes from April to MAY.

Since February, the reduction of GBTC holdings has slowed down. Although GBTC may eventually be cleared due to high fees, overall BTC ETF funds are still showing a slow inflow.

After the rebound, the volatility of ETH also decreased, maintaining a narrow range around 2300. The trading volume of ETH has dropped significantly. Although the WTA indicator does not show whale participation in trading, the gray columns representing retail investors is also declining. The bullish trend continues on the ME indicator.

Switch to the 4h level, where you can see the decline in trading volume more clearly. The ME indicator remains in a bearish trend. ETH is a follower, with traders tracking ETH pricing based on BTC’s rebound. ETH turned active for a while after the approval of the BTC ETF, but it soon disappeared, and discussions of Dencun and the ETH ETF did not prevent trading volumes from declining.

To sum up, ETH is likely to continue to fluctuate this week. We maintain our original resistance level 2700 and support level 2200.

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