• Ethereum price got caught in the turmoil that ran through markets after the publication of the FED minutes.
  • ETH dipped toward $2,053 but bounced off a supportive trend line.
  • With moving averages coming in, a possible golden cross could be formed.

Ethereum price topped the $2,400-barrier before markets rolled over and got caught under selling pressure. Risk assets dipped lower across the board and in several asset classes. It was no different for cryptocurrencies. But there looks to be upside potential again as a technical level was well-respected, and a technical indicator might be getting ready for more upside.

Ethereum price looks set to jump higher

Markets had an adverse reaction to the FED minutes as investors are worried about the reflation trade. This sparked a short-term sell-off in risky assets like cryptocurrencies and stocks. 

In the meantime, sentiment has recovered and is back to risk-on. This lift in view should be the tailwind for Ethereum price to pair losses from the past few days and look for new levels higher up.

Technically, Ethereum respected the very solid ascending orange trend line from June 21. It would be vital if ETH price can close above this trend line as confirmation of its strength. 

An additional reason to be optimistic about ETH is that the 55 and 200 four-hour Simple Moving Average (SMA) are converging toward each other, which could very well be the formation of a golden cross. In its turn, it would attract more buyers and push prices back up.

The first target for profit would be $2,278.42 that proved to be challenging to break in the past. ETH has not had close above this level since June 17.

ETH/USD 4-hour chart
ETH/USD 4-hour chart

Ethereum is prime for a jump higher and the price action around $2,084 is a solid entry point with the ascending trend line as proven support. 

Should markets turn over again and dip lower, expect a retest on the low of June 22 at around $1,650.


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


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP