- 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
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.
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