Bitunix Analyst: Powell Stabilizes Rate Cut Expectations, ETH Liquidation Heatmap Reveals Capital Defense Position

BlockBeats News, October 18: Internal divisions within the Federal Reserve have intensified, with Federal Reserve Chair Powell reaffirming his stance that the labor market is fragile and a rate cut is inevitable in a recent speech. The market widely expects another 25 basis point rate cut on October 29. However, some officials have expressed reservations about continued rate cuts, making inflation and growth resilience the core of policy debate. The futures market has already priced in the possibility of another rate cut in December, indicating that investors are betting on the extension of the easing cycle.

Market reaction has seen increased short-term volatility in crypto assets. According to Coinglass data, the ETH liquidation heat map shows a high-density liquidation zone between $3,709 and $3,926, indicating intense competition between long and short positions in this area. The main support level is around $3,589, and a break below this level may trigger a new round of leveraged liquidation. On the upside, pressure is focused in the $4,085 to $4,180 range, reflecting the market's hedging sentiment towards macro uncertainties.

Bitunix Analyst View: The Federal Reserve's internal consensus on rate cuts coexists with inflation concerns, indicating that a rhythm of alternating loose and tight financial environments will dominate market trends before the year-end. The leverage distribution of ETH shows that funds are shifting towards a defensive posture, suggesting continued high short-term volatility. However, if the rate cut pace stabilizes, liquidity restoration could provide a second opportunity for mainstream assets to move higher.