Macro situation: Wave of liquidity coming to market
🇺🇸 The US Treasury just bought back $12.5 billion in government bonds. Largest share buyback ever recorded.
Why this is important:
- Debt buybacks = liquidity support
- Liquidity support = risk asset pump
- Pumping risk assets = crypto rally
This new liquidity injection includes:
- expectations Return of QE
- market pricing interest rate cut
- A flood of funds supporting the bond market
- Central banks around the world, including Japan, introduce competing economic stimulus measures
Even the only risk factor, the possibility of a Bank of Japan rate hike, has been mitigated by Japanese policy. $185 billion stimulus package announced at the same time.
All of this creates a bullish atmosphere. Q1-Q2 2026and cryptocurrencies are already reacting.
Ethereum Price Analysis: Strong Reversal from Support
$Ethereum bounced cleanly off major support zones $2,730forming a strong V-shaped recovery.
ETH/USD 1 hour chart – TradingView
Key findings from the chart:
1. ETH breaks above the $3,200 resistance level
$ETH is currently consolidating at this level, a strong sign that buyers are defending a breakout rather than taking profits.
2. Momentum is slowing, but still bullish
of Stock RSI indicates a return from an overbought condition, which typically occurs after a strong rally. This is not bearish. It often precedes the next wave.
3. Structure remains bullish
- higher low
- higher highs
- Clean recovery of key EMAs
- Strong correlation with BTC upward momentum
The $3,200 level is the line to watch.
ETH price prediction: what happens next?
Upside price target (bullish scenario)
As liquidity expands and BTC crosses $90,000:
1. $3,350 – Small resistor: If BTC remains stable, a retest of this zone is likely.
2. $3,500 – Main goal: This is the next significant resistance level on the chart and was previously marked as a local top. Above $3,500, you can:
3. $3,800 – Expansion Goal: This requires strong BTC momentum and sustained liquidity inflows.
Downside price target (if the market falls)
If ETH loses $3,200 space:
1. $3,050 – Local support: It is likely to be tested once the momentum cools down.
2. $2,900 – Strong support: Previously, buyers had actively intervened at this level.
3. $2,730 – Major support zone: This is a resilience line for ETH, a loss of which could weaken the trend.
at the moment, None of these downside levels are threatened.
How Bitcoin’s return above $90,000 boosted ETH
Ethereum tends to perform well after Bitcoin stabilizes from a correction. Last 48 hours:
- Bitcoin recovered $90,000
- Market fears are gone
- Confidence boosted by US Treasury liquidity injection
- Risk assets across stocks and cryptocurrencies recover
Once BTC regained dominance and momentum, ETH traders returned to the market.
Historically:
BTC stability + macro liquidity = ETH acceleration
This is exactly what we are witnessing now.
