Brace Yourselves: Crypto Markets Primed for Explosive Moves Tonight

Crypto traders are strapping in for what could be a wild ride tonight as key technical levels loom.

Market whispers suggest a potential breakout—or breakdown—that could send shockwaves through portfolios. Liquidity pools are tightening, and leveraged positions are stacking up like dominoes.

Meanwhile, traditional finance pundits scoff from the sidelines—right before checking their bags for the tenth time today.

A Significant Night for Cryptocurrencies

The price of ETH has surged to $4,775, inching closer to the recent peak with less than $100 to reach a new ATH. If the $4,700 level is maintained, there is potential for the daily candlestick to close above the previous ATH. This scenario justifiably excites investors, as ETH’s MOVE toward price discovery may lead to similar ATH attempts by other major cryptocurrencies.

For instance, SOL Coin has remained above the $200 mark and is eyeing a target of $296. Meanwhile, BNB Coin is positioned just below its ATH. The commencement of this process, which will accelerate the decrease in Bitcoin$122,654‘s market dominance, promises to be thrilling.

On the ETHBTC pair, the 0.0385 level holds strong, having surpassed the 0.037 resistance. This indicates a target of 0.0407BTC, which, if reached, WOULD mean ETH achieving a new ATH. Hence, investors’ anticipation for staying awake tonight is well-founded.

Fed Members’ Announcements

Goldman Sachs recently released a macroeconomic research report, suggesting the Fed may reduce rates by 25 basis points twice in 2026, aiming for a final rate between 3%-3.25%. They anticipate three 25bp cuts, totaling 75bp, in September, October, and December this year.

In recent hours, statements from two Fed members surfaced, starting with Bostic. His remarks touched on the structural changes tariffs might induce and the labor market’s current robustness, allowing a wait-and-see approach in policy adjustments. Despite a low unemployment rate, signs of recent labor market weakness emerged. He emphasized the struggles faced by low and middle-income consumers, noting difficulties now impacting higher-income brackets. Small businesses face greater stress than their larger counterparts, and there’s been a rise in credit card use for purchases beyond routine items.

Bostic forecasts a rate cut in 2025, conditional on maintaining a strong labor market.

Goolsbee also discussed rate reductions. He noted that long-term interest rates, partly reflecting inflation expectations, are pivotal for mortgage determinations. If inflation trends negatively, Fed action would be necessary. Although some labor market indicators are robust, others raise concerns. A sustained positive inflation trajectory is needed to consider a rate cut. Should the labor market deteriorate, the Fed might need to reduce rates, though this remains uncertain. Recent moderate inflation was followed by a worrying rise in service inflation in CPI data. Basic economic factors might naturally lead to future rate cuts. However, given the semiconductor tariffs and new customs tariffs, these could introduce an unwelcome inflationary shock.

Goolsbee noted that if one believes inflation is heading toward 2%, preemptive rate cuts are feasible. Should contrary data emerge, it’s possible to halt rate adjustments. Some significant data will be released before the Fed’s September meeting, underscoring his point that a decision cannot be postponed until then.