- Ethereum price has staged a massive recovery in just three weeks times.
- ETH has reclaimed two important moving averages in favor of the bulls.
- With the rejection against a double top and the Fed and BoE set to issue their first rate decision of the year, a big fade gets underway.
Ethereum (ETH) price is currently printing near 30% gains for the year in three weeks. Thus far, the good news as the rally stalls after price action received a rejection on the topside from a double top. The timing does not help bulls either, as the central banks are set to dampen the most positive mood in the markets since the invasion of Russia in Ukraine.
Ethereum price sees traders facing the music
Ethereum price sees its good rally for 2023 end as markets are being caught up by reality. During the first weeks of 2023, markets only had data that matched the markets' mood, with further deterioration of several data points and inflation coming off further from its highs. The outlier in all this is the central bankers that keep issuing warnings out of several fronts that central banks will not stop until the 2% policy target has been reached.
ETH is facing some technical and macro-economical hurdles, with the double tops area that triggered another rejection, and the central bankers set to issue their monetary policy outlook for the coming months. THe rejection at $1,688 was harsh and came from tops not tested since September of last year. If the central banks stick to their guns, the rally will be unwinded and push price action back to $1,404 for support, and on a breach, could see $1,200 being printed on the quote board if the rally gets entirely erased.
ETH/USD weekly chart
A turnaround in monetary stance is possible should the Fed or another central bank come out with softer words or channels to the markets that some data points are showing to even more signs of inflation declining. That would mean that the market was right, and more appetite for risk assets would emerge. ETH would pierce through $1,688 and rally towards $1,928, halting just before the psychological $2,000 level.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.