Ethereum has demonstrated remarkable resilience in the face of a hawkish Federal Reserve, attracting over $1 billion in buying interest despite tighter monetary policy conditions. The surge in demand comes as the central bank maintained interest rates within the 3.5% to 3.75% range and signaled that short-term inflation could rise, partly due to increasing energy prices.
Crypto analyst Darkfost highlighted on X that ETH recently rebounded above $2,450 before correcting roughly 10%, trading back below $2,300. Rather than signaling weakness, this price level triggered aggressive buying. Within one hour, taker buy volume on Binance surged past $1 billion, while OKX recorded nearly $20 million in buying flows during the same period. This aggressive accumulation suggests investors are positioning with long-term conviction rather than reacting to short-term narratives.
Meanwhile, Ethereum's broader market structure shows a market coiling for a decisive move. Despite a 30% recovery from February lows near $1,800, funding rates on Binance have remained persistently negative, with the monthly average sitting at -0.0018. The last time funding remained this negative for this long was November 2022 during the FTX collapse, at the end of the previous bear market. Darkfost noted that short liquidation volumes have been rising as upward momentum forces overleveraged short positions to close, potentially creating a self-reinforcing recovery.
From a technical perspective, Ethereum is currently trading around $2,280, compressing between the rising 50-day moving average and descending 100-day and 200-day moving averages. The $2,350–$2,450 region has formed a clear supply zone, with each push toward these levels facing rejection. A clean break above $2,450 would open the path toward reclaiming $2,700, while losing the $2,200–$2,250 support area could expose the market to a deeper retracement toward $2,000 or lower.
Despite the hawkish macro backdrop, some market participants remain willing to bet on a constructive short-term outlook for ETH. According to analyst Shibatarzan, investing in Ethereum should be viewed over a 10 to 20 year horizon, with periods of weakness often presenting the best accumulation opportunities. He predicts that the next decade will bring transformative progress for Ethereum, drawing a parallel to the early internet days.
