Ethereum (ETH) Volatility Surges as Fed Rate-Cut Bets Persist; Key $3.7k–$3.9k Liquidation Zone and $3.59k Support

COINOTAG notes intensified intra-agency debate at the Federal Reserve, as Chair Powell reaffirmed the labor market’s fragility and signaled an imminent policy adjustment. Markets price in a 25-basis-point rate cut at the upcoming October decision, with inflation dynamics and growth resilience shaping the central bank’s deliberations.

Streaming crypto markets reacted as futures volatility rose amid policy chatter. Data from Coinglass highlights a pronounced ETH liquidation zone between roughly $3,700 and $3,900, where long and short positions collide. Key support sits near $3,589, while a breach could trigger renewed leveraged liquidations; resistance clusters around $4,085–$4,180 reflecting macro-hedging sentiment.

Bitunix analysts describe a regime of alternating loose and tight financial conditions driven by inflation signals, with ETH still displaying elevated leverage risk. The shift toward defensive positioning implies sustained near-term volatility. Should policy cadence stabilize, a recovery in liquidity could support select assets without promising gains.

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