Ethereum Price Forecast: “Tower - Tower, ETH requesting a soft landing”

• Ethereum price halts trading as traders sit on their hands.
• ETH could see momentum brewing for a massive breakout trade higher.
• With markets shaping up for a positive reading of the Fed events this evening, expect a breach above $1,688.

Ethereum (ETH) price action sees traders gearing up for the fireworks this evening as the Fed and its Chair, Jerome Powell, are taking the stage this evening for the first time this year. A lot had changed since their last meeting in December when they made the Christmas rally crash and burn. Will the Fed and Powell do the same this evening, or have there been enough changes along the way in the data to confirm they do not need to trigger a recession to halt inflation?

Ethereum price flying in on favourable wind for a soft landing of the economy 

Ethereum price has already made an attempt at trying to break $1,688 earlier this month. With the main event set for this Wednesday evening, the much needed big catalyst could be there to blow the price action sky high. Expect to see markets acting a bit unphased until the Fed comes out first with its rate decision at 19:00 GMT. First moves will happen, but traders need to be aware that that is just the initial move. It could be fully pared back with the next event that will follow half an hour later.

ETH could see a follow-through to the upside as markets already rallied on the smaller 25-basis-point hike, which got announced at 19:00 GMT. Next Powell will take the stage and his message will be vital with the climax around 20:00 GMT. If his takeaway is that the markets have cooled down enough and economic data is pointing to a continuous and solid decline in inflation, expect Powell to be very dovish and supportive for risk assets with Ethereum price set to break above $1,688 and possibly even hit $1,800 by Friday. 

ETH/USD daily chart

Powell's message could be a simple play and repeat from the message he brought in December, which made the Christmas rally turn ugly. A similar event could occur if markets are not getting any confirmation as to whether the Fed is near its pivotal level and is still going for a hard landing with higher unemployment as a key element to getting inflation down. In that case, risk assets will be battered with ETH set to break below $1,500 and find support near $1,400 between the 200-day Simple Moving Average (SMA) and the 55-day SMA.