Ethereum Price Recovery Likely as BOJ Softens Rate Hike Talk

Ethereum (ETH) could be setting the stage for a massive comeback after the recent developments surrounding the Bank of Japan (BOJ)’s interest rate decision. Additionally, the sentiment around ETH seems to be shifting toward a positive note after the recent market crash. However, investors should not stop being cautious as the macroeconomic outlook remains uncertain. Furthermore, the Chinese government is moving Plus Token’s seized assets, which include $2 billion worth of ETH. 

Bank of Japan Backpedels Interest Rate Hike Talks

Bank of Japan’s deputy governor, Shinichi Uchida, clarified in the early Asian session on Wednesday that the central bank will not raise interest rates amid uncertain market conditions. This remark contradicts last week’s hawkish comments by Central Bank Governor Kazuo Ueda.

These comments from Uchida caused the Nikkei Index to surge by 5% on Wednesday, and the positive effects could also be seen across the crypto and stock markets. Ethereum is in the perfect position to trigger a massive comeback.

Three Reasons for Ethereum Price Comeback

BOJ’s decision is the main bullish driver that has uplifted the stock markets worldwide. In addition to these, Ethereum has three key reasons why it could witness a massive recovery rally. 

1. According to James Butterfill, CoinShares’ Head of Research, investors flocked to ETH in the first two days after the crash while avoiding BTC.
2. Spot Ethereum ETFs saw a net flow of $98.3006 million despite the recent market crash, illustrating the above point. 
3. Nasdaq and BlackRock have filed with the US Securities and Exchange Commission (SEC) to list and trade options for spot Ethereum ETF. 

These three developments are fundamental and are likely to have a huge impact on the price of Ethereum, especially if the macroeconomic conditions settle down. 

Ethereum price prediction shows that the $2,618 is the next key resistance level to watch. Overcoming this hurdle could allow bulls to propel ETH to the $100 range, stretching roughly from $2,900 to $2,800. Flipping $2,618 into a support floor would allow Ether price to attempt a retest of the $3,000 psychological level. 

On the other hand, if Ethereum price fails to overcome the $2,618 hurdle, it would signal that the bulls are weak, which could be attributed to the uncertain macroeconomic conditions. Additionally, China has moved $2 billion worth of ETH in the early New York session. If these developments catch traction, it could knock ETH price to revisit the $2,190 support floor.