Ethereum Capitulation May Be Nearing End – Will A Fed Pivot Spark A Recovery?

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Ethereum Capitulation Deepens, But Fed Pivot Could Spark Rebound

Ethereum has extended its downtrend, setting fresh lows around $1,400 — a level not seen since early 2023. The continuation of selling pressure has shaken market sentiment, with many investors fearing that the worst is still ahead. Ethereum, down over 65% from its 2024 highs, has failed to find a solid support level amid broad market weakness and growing macroeconomic uncertainty.

Despite the bearish outlook, some analysts believe a turning point may be near. According to top analyst Ted Pillows, Ethereum is now deep in a capitulation phase. He suggests that while there may still be one final 5%–10% dump left in the tank — particularly given the recent weakness in equities — the broader market structure may be setting the stage for a rebound.

Pillows points to a potential Federal Reserve pivot as a key catalyst. With traditional markets under pressure and volatility rising, a shift in monetary policy could bring relief. Historically, changes in the Fed’s stance have provided a strong boost to risk assets. If support from policymakers emerges, Ethereum could stabilize and begin recovering from its recent lows — but not before weathering one last wave of fear and uncertainty.

Conclusion
In conclusion, Ethereum’s capitulation phase has deepened, with the cryptocurrency trading at fresh lows. While the bearish momentum appears strong, some analysts believe a turning point may be near, driven by a potential Federal Reserve pivot.

FAQs

Q: What is Ethereum’s current price?
A: Ethereum is currently trading at $1,400.

Q: Why has Ethereum’s price fallen so sharply?
A: Ethereum’s price has fallen due to a combination of factors, including broad market weakness, growing macroeconomic uncertainty, and a lack of a solid support level.

Q: What is the potential impact of a Federal Reserve pivot on Ethereum’s price?
A: A potential Federal Reserve pivot could provide a strong boost to risk assets, stabilizing Ethereum’s price and potentially sparking a rebound.

Q: Is it likely that Ethereum will continue to fall?
A: While the bearish momentum appears strong, some analysts believe that a turning point may be near, driven by a potential Federal Reserve pivot. However, the path of least resistance remains to the downside, and Ethereum remains vulnerable to further losses unless supported by broader market strength or a decisive macro shift.