The overall trend of Ethereum remains strongly bullish. However, it encountered resistance at the previous all-time high. After a recent pullback, it has stabilized and is expected to continue its upward movement.

The Japanese yen (JPY) has weakened slightly but remains supported by the decline in trade and political risks. Its short-term direction depends on the remarks of global central banks and the major economic data of Japan to be released on Friday. Recent election results show that the ruling coalition led by Prime Minister Ishiba Shigeru, though weakened, remains in power.

The market expects the Federal Reserve to cut interest rates at its next policy meeting, with the probability of a rate cut estimated to be close to 83%. Lower interest rates could reduce the opportunity cost of holding silver, thereby supporting this non-yielding white metal.

From this support, the pair previously rebounded toward 0.6570 before resuming its decline, creating a descending trendline that now looms as a potential resistance barrier.

If the pair finds strong bullish rejection in this area, fresh upward momentum could emerge, paving the way for a potential recovery toward the 0.8120 zone.

The British pound slipped against the US dollar on Wednesday despite hotter-than-expected UK inflation data, as political drama at the Federal Reserve overshadowed economic fundamentals and dented investor sentiment. GBP/USD trades at 1.3469, down 0.15% on the day.