Ethereum Reclaims $3K as Fed Policy Shift Boosts Crypto

The catalyst for Ethereum’s rebound to $3,000 is rooted in a fundamental change in U.S. monetary policy. The Federal Reserve has officially ended its Quantitative Tightening (QT) program, a move that immediately boosted liquidity expectations across financial markets. This policy shift signals a more accommodative environment ahead, with markets now pricing in imminent interest rate cuts. For risk-sensitive assets like cryptocurrency, the end of QT removes a significant headwind, allowing confidence to return. Ethereum, as a leading digital asset, has been one of the first major beneficiaries of this improving macro backdrop, reclaiming a key psychological price level on the improved sentiment.

This macro relief provides more than just a temporary boost. It alters the fundamental liquidity landscape that cryptocurrencies operate within. The anticipation of rate cuts and increased market liquidity creates a more favorable environment for capital flow into digital assets. Ethereum’s positive reaction to this news underscores its continued sensitivity to traditional financial currents, positioning the rebound as part of a broader risk-asset recovery rather than an isolated crypto event.

While macro conditions set the stage, on-chain activity reveals a powerful narrative of institutional conviction. Data from analytics platform Arkham, reported by Lookonchain, shows that the entity known as Bitmine continues to accumulate Ethereum aggressively. Just hours before publication, Bitmine purchased another 18,345 ETH, worth approximately $54.94 million. This is not an isolated event but part of a persistent series of buys throughout the recent market correction, signaling a strong belief in Ethereum’s long-term value proposition despite prevailing volatility.

The accumulation story deepened shortly after, with Lookonchain highlighting a newly created wallet, 0x52B7, which withdrew a massive 30,278 ETH—valued at $91.16 million—from the Kraken exchange. The size and timing of this withdrawal have led analysts to speculate a potential link to Bitmine or a coordinated accumulation strategy. Large withdrawals from centralized exchanges like Kraken typically indicate an intent to hold assets in long-term storage or for staking, not for imminent sale. If connected, this would bring the day’s combined strategic buying to nearly 50,000 ETH. Such synchronized, large-scale activity is a powerful on-chain signal that sophisticated players are positioning for a stronger market phase.

Despite the bullish catalysts, Ethereum’s technical picture reveals a market still in recovery mode. The rebound follows a deep correction from the $4,500 region down to a support zone between $2,700 and $2,800. While the strong lower wicks on price charts confirm active demand at those levels, ETH has yet to fully reclaim its bullish structure. The price currently trades just below the 50-day Simple Moving Average (SMA), which presents a key short-term resistance barrier in the $3,100 to $3,150 zone.

A decisive break and close above this 50 SMA is critical to signaling renewed upward momentum and opening a path toward retesting the $3,400 to $3,600 range. However, the 100 and 200 SMAs remain above the current price, a reminder of the broader downtrend that has persisted. Furthermore, trading volume during the recovery, while improved, remains muted compared to the selling volume witnessed during the downturn. This suggests the current buying is cautious rather than the aggressive, widespread accumulation needed for a unequivocal trend reversal. The market’s next major test is a clean break above the $3,200-$3,300 resistance cluster.