Ethereum (ETH) fell 3.01 percent to $2,256.46 after the U.S. Federal Reserve held interest rates, but the dip was met with a surge of over $1 billion in buy orders on the Binance exchange within a single hour on April 30.
"Ethereum draws $1B in buy volume despite Hawkish Fed hold," crypto analyst Darkfost said in a post on X, noting that nearly $20 million in additional buying flows were recorded on the OKX exchange during the same one-hour window.
The aggressive buying occurred as ETH’s price dropped below the key psychological level of $2,300 following the Federal Open Market Committee's decision to maintain the federal funds rate at a target range of 3.50%-3.75%. While the rate hold was widely expected, the Fed's cautious tone on inflation put initial pressure on risk assets. Data from Coinglass shows the move triggered a 24-hour trading volume of over $19.4 billion for Ethereum as traders reacted.
The market now faces a tug-of-war between the central bank's policy and strong underlying demand. For Ethereum to reclaim its footing, it must close above the $2,300 level. A sustained break above the 100-day EMA at $2,349 could open a path toward the $2,583 resistance. However, failure to hold the current zone could see prices test support at the 50-day EMA near $2,245.
The immediate dip-buying aligns with a broader trend of accumulation by large investors. On-chain data from Santiment shows that whale wallets, excluding exchange addresses, added 1.08 million ETH, worth approximately $2.49 billion at current prices, in the 10 days between April 19 and April 29.
This accumulation suggests large investors were using the pre-Fed consolidation period as an opportunity to build positions. The trend is reinforced by a continuous decline in Ethereum supply on exchanges, which has reached its lowest point since 2016. According to the data, 331,000 ETH were withdrawn from exchanges since April 19, indicating a preference for holding assets in private wallets for the long term and reducing immediately available supply. This contrasts with the market dynamics of Bitcoin (BTC), which is more directly influenced by institutional ETF flows.
This dynamic of heavy accumulation and decreasing liquid supply suggests some of the market’s largest players are positioning for a potential supply shock, betting that structural on-chain factors will outweigh short-term macro headwinds from central bank policy.
This article is for informational purposes only and does not constitute investment advice.
