Ethereum is currently hovering around $3,170, moving back and forth. Many people are staring at the charts until their eyes blur, just wanting to ask: which way will it go next?

Don’t rush to conclusions. There’s a recent piece of news worth noting—the Bank of America predicts that the Bank of Japan may raise rates to 0.75% in December, and then hike again every six months thereafter. You might wonder, what does Japan raising rates have to do with crypto? Actually, it matters quite a bit.

Interest rate hikes in traditional financial markets mean that some funds will retreat from high-volatility assets and flow back into relatively stable investment channels. In the short term, this does put some pressure on the market. But from another perspective, when global liquidity tightens, it could actually push more capital to seek decentralized assets as a hedge against risk. So there are two sides to this—don’t assume a rate hike automatically means a crash.

Looking at the chart, ETH is currently stuck in a range between 3,100 and 3,200, grinding back and forth. The 3,100 level is a solid support below, while 3,200 is a clear resistance above. On the 4-hour chart, there’s a positive signal—the yellow and white lines have crossed above the zero axis, indicating short-term momentum is strengthening.

But here’s the problem: trading volume isn’t keeping up! It’s like the engine is revving loudly, but the gas pedal isn’t fully pressed. The market is quiet, meaning most people are still on the sidelines, with bulls and bears wrestling at this level, neither willing to give in.

The current situation is: technicals want to break upward, but macro news is holding things back. If there’s a breakout above 3,200 with strong volume, it could open up new upside potential; but if it falls below 3,100, it’s time to reassess support levels. Until there’s a clear direction, don’t rush to go heavy on positions.