Acceleration of the money supply and its threat to crypto: ETH technical analysis amid the Bank of Japan meeting

The global expansion of the money supply creates tension in the crypto market when traditional assets are rising, while digital assets remain under pressure. This creates an unstable situation that requires careful monitoring of macroeconomic factors, especially central bank decisions.

Macro Factors: Money Supply Expansion and Its Impact on the Market

Today’s Bank of Japan meeting remains a key moment in determining the future trajectory of the crypto market. The market is expecting one of two scenarios: maintaining current policy without interest rate hikes, or an unexpected acceleration of rate increases due to concerns over yen depreciation.

If the Bank of Japan accelerates rate hikes due to yen devaluation, it will have a cascading effect on all risk assets, including cryptocurrencies. Such monetary policy expansion in one country often triggers a global revaluation of assets. The instability demonstrated by global markets reflects this deep concern.

ETH Technical Analysis: Resistance at $2,980 and Potential for Breakout Acceleration

Ethereum is currently trading in a critical zone on the four-hour chart. At the current price of around $2,750, the four-hour resistance remains at $2,980, which has not yet been broken. As long as the four-hour candle does not close above this level, the possibility of a breakout remains limited.

Short-term recoveries show low intensity, indicating an inability of buyers to hold positions. This is a market type where every minor rebound ends in a pullback. However, if resistance at $2,980 is broken, targets shift to $3,030-$3,070, and then could extend to $3,100.

Support is concentrated at two critical levels: $2,905 and $2,870. As long as these levels hold, they serve as a foundation for the technical resilience of the contract.

Trading Opportunities: From Correction to Potential Profit

At this stage of correction, buying on dips to support levels remains a justified strategy. However, any upward movement without a breakout of resistance at $2,980 should be considered as an opportunity to lock in positions. This is the essence of short-term trading – recognizing a reversal before it begins in the field.

Analysts tracking this pair note the resilience of a short position near $3,020 with profit accumulation of over 80 points. This result indicates the reliability of technical resistance at this level. For those holding positions, it is recommended to preserve part of the profit, warning of the possibility of a sudden upward surge.

Conclusion: Waiting for the Bank of Japan’s Decision

Acceleration of monetary policy, depending on the Bank of Japan’s decision, could change the market dynamics. The coming hours remain decisive. If further growth is expected, it will provide another opportunity for short positioning for investors who missed it. Additionally, monitor the ZEC pair and other altcoins, where technical signals may be even clearer.