Recently, Ethereum's price movements have been quite volatile. Looking back at yesterday's situation, before the US stock market opened, the Federal Reserve issued a signal of rate cuts. This led to a noticeable adjustment in market expectations for subsequent policies, and the previously accumulated long positions began to retreat. This can be seen from the continuous outflow of ETFs. Additionally, with the recent interest rate hike by the Bank of Japan, the risk appetite in the crypto market has indeed been declining in the short term.
This wave of ETH correction is actually quite typical—after the market's speculative space contracts, profit-taking follows. Mainstream tokens like ACE and PYR also performed somewhat weakly, with clearly insufficient bullish momentum during the day.
From the current pattern, the rate cut expectation has gradually shifted from being a positive factor to being fully priced in. Next, the market will pay more attention to actual data and macro liquidity changes. For short-term trading, it’s important to closely monitor the Federal Reserve’s subsequent actual actions and the changes in the crypto market’s funding environment. The current phase of the market truly tests risk management capabilities.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
18 Likes
Reward
18
2
Repost
Share
Comment
0/400
LiquidityNinja
· 2025-12-18 15:29
Here they go again, cutting again, and this time they blame the Federal Reserve?
The rate cut signals caused a drop instead of a rise, hilarious. I've said it before, when good news is exhausted, it's actually bad news. When funds start fleeing, it's time to wake up.
ETF outflows are the real story. Don't listen to those analysts talking about risk appetite; honestly, they just don't have the money to buy in.
---
Risk management? Bro, we barely have any bullets left this round, just counting on a rebound.
---
How are the guys who bought ACE earlier doing now? Still waiting to break even, right?
---
Just waiting for the Fed's next move. If they really cut rates, I remain optimistic. If I have to hold, I’ll admit defeat and cut my losses.
---
The joke of the Bank of Japan raising interest rates—while the rest of the world is easing liquidity, they do the opposite. This market is too surreal.
---
Taking profits and closing positions? That's too mild. Let's just say cutting losses—it's the most honest.
---
Short-term is indeed tough, but I still don't believe Ethereum will be suppressed long-term. Just wait and see.
View OriginalReply0
ApeWithNoChain
· 2025-12-16 23:42
Here we go again, chopping the leeks
---
Can ETF outflows save the market? I doubt it
---
Expectations of interest rate cuts are losing their heat after the hype, this trick is old
---
Just waiting for the central bank to pump liquidity, nothing else
---
Insufficient bullish strength? Then why are the bears so fierce?
---
When did ACE and PYR ever surge……
---
Risk management? In the crypto world, it's just gambling
---
It's either the Federal Reserve or the Bank of Japan, anyway, the fall is all their fault
---
Price being set = the chop is done, got it
---
The key is still the funding situation, in simple terms, just lack of money
Recently, Ethereum's price movements have been quite volatile. Looking back at yesterday's situation, before the US stock market opened, the Federal Reserve issued a signal of rate cuts. This led to a noticeable adjustment in market expectations for subsequent policies, and the previously accumulated long positions began to retreat. This can be seen from the continuous outflow of ETFs. Additionally, with the recent interest rate hike by the Bank of Japan, the risk appetite in the crypto market has indeed been declining in the short term.
This wave of ETH correction is actually quite typical—after the market's speculative space contracts, profit-taking follows. Mainstream tokens like ACE and PYR also performed somewhat weakly, with clearly insufficient bullish momentum during the day.
From the current pattern, the rate cut expectation has gradually shifted from being a positive factor to being fully priced in. Next, the market will pay more attention to actual data and macro liquidity changes. For short-term trading, it’s important to closely monitor the Federal Reserve’s subsequent actual actions and the changes in the crypto market’s funding environment. The current phase of the market truly tests risk management capabilities.