ETH ‘god candle’ emerges amid Fed rate cut hopes

On Friday, Ether experienced a rapid 13% rally to $4,788, forming a textbook “god candle” on the four-hour chart after Federal Reserve Chair Jerome Powell signaled potential interest-rate cuts in September. This sharp upswing broke through the $4,350 resistance level that had capped price movements all week, triggering a wave of stop losses above key supply zones and propelling Ether through the $4,550–$4,650 range.

Data from Cointelegraph Markets Pro and TradingView confirmed that spot Ether ETFs recorded record inflows of $2.45 billion in August, bringing total ETF holdings to 6.42 million ETH—an increase of over 2.27 million ETH since early July. This structural demand shock has removed significant liquidity from the spot market, amplifying price moves on relatively modest buy orders. On-chain analytics by CryptoQuant highlighted that custodial flows into ETFs have outpaced outflows for 47 consecutive trading days, reinforcing a persistent bid under Ether.

Technical indicators also flashed bullish. The relative strength index (RSI) on the daily chart crossed above 70 for the first time since May, confirming strong upward momentum, while the moving average convergence divergence (MACD) histogram expanded positively. Volume profile analysis showed a shift in point of control from $4,200 to $4,600, indicating a new acceptance level in the market.

Whale activity intensified, with addresses holding over 10 000 ETH increasing by 3% during the rally, according to Nansen. This surge in large-holder participation suggests growing institutional conviction. Meanwhile, decentralized finance platforms reported a net outflow of 150 000 ETH in lending contracts, pointing to capital rotation from borrowing to long exposure.

Looking ahead, the next key resistance sits at the $5,000 psychological level, followed by historical sell walls near $5,200 and $5,500. Market participants will also watch the CME FedWatch Tool, which currently assigns a 91.5% probability to a September rate cut. Should the Fed follow through, Ether could target $6,000 by year-end, completing a rally driven by both macro catalysts and on-chain demand metrics.