fxs_header_sponsor_anchor

Ethereum price rallies towards $3,000 after the Fed increases interest rates

|ByJonathan Morgan

  • Ethereum price continues to move higher during the Wednesday evening trade session. 
  • Significant upside potential exists of Ethereum can remain above $2,775. 
  • Downside risks remain a concern, and they are substantial. 
Ethereum price responded bullishly to a somewhat hawkish interest rate increase from the Federal Reserve. Likewise, risk-on markets worldwide had a positive response, indicating that market participants felt the rate hike was already priced in. 

Ethereum price must maintain its bullish momentum, or a massive bull trap could develop

Ethereum price action has been very volatile over the past several weeks. A series of major bearish continuation patterns were confirmed, but bears were unable to unwilling to push Ethereum lower. Instead, buyers and sellers were likely waiting for the Fed to announce their decision before making any moves. 
 
After the Fed announced an expected 25 basis point rate hike, Ethereum responded positively. However, on the weekly Ichimoku chart, Ethereum price is currently testing the first resistance cluster at $2,775, consisting of the weekly Tenkan-Sen and the 2022 Volume Point Of Control. 
 
Above the $2,775 resistance cluster is even stronger and more decisive resistance zone containing the 50% Fibonacci retracement and the top of the Ichimoku Cloud (Senkou Span A) at $2,900. So ultimately, if Ethereum price wants to establish a new uptrend, it will need to close above the weekly Ichimoku Cloud at or above $2,925. 
ETH/USD Weekly Ichimoku Kinko Hyo Chart
 
If Ethereum price cannot close the weekly candlestick above $2,775, then a very probable bearish continuation move will likely occur. Therefore, the potential profit zone short-sellers would target is a return to the bottom of the Ichimoku Cloud (Senkou Span B) at $2,300. 
 
Bulls have a difficult road ahead because to invalidate any near-term bearish outlook, the roadblocks ahead are many and difficult to break. As a result, significant volume and momentum will be required. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.