ECB's Rehn: Uncertainty about future economic developments remains high

💡 DMK Insight

With ETH at $3,501.16, traders need to brace for potential downside risks as the ECB signals a cautious stance. The European Central Bank’s reluctance to act until at least the new year suggests that monetary policy will remain tight, which could weigh on risk assets, including cryptocurrencies like Ethereum. If the market interprets this as a sign of economic weakness, we might see ETH testing lower support levels. Keep an eye on the $3,400 mark; a breach could trigger further selling pressure. On the flip side, if ETH manages to hold above this level, it could indicate resilience and attract buyers looking for a dip. However, the broader sentiment is likely to remain bearish until we get clearer signals from the ECB or other economic indicators. Watch for any shifts in trading volume or sentiment that could signal a reversal or confirmation of the downtrend.