Following yesterday’s Fed announcement, Ethereum moved to $2700. It was announced that the Fed would increase interest rates by 0.25 percent, a highly anticipated announcement. Ethereum responded positively and has risen from its previous slump. Although the price of this digital asset has risen to $2,700, it remains far from stability.
The Rally: What It Did
Ethereum’s rally on Wednesday was a welcome one, showing more bullish tendencies towards cryptocurrencies following the Fed’s decision. Now, Ethereum is set to challenge even more resistance points after overcoming the $2.522 resistance. ETH has retreated from the resistance of bears at $2,800.
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The recent rally, though it was only temporary, has put the digital asset on an upward trajectory. Now, it trades above its 20-day moving median. This means that the sentiment to purchase the asset at such prices is turning towards the good.
The indicators point to significant support for cryptocurrency at the $2,600 mark. At its current price however, $2,839 is the next resistance level. This is where bears must hold if they break below $2,800. If the price falls, it would push the digital asset to the $2600 mark, something bulls are trying to avoid.
Ethereum on a Bull Trend
The market is in its current trend and digital assets must touch these points to create a new bull run. Justin Bennett, crypto analyst, says that this is the case for Ethereum. It’s above $2800. The position above $2,800 would place the digital asset at $3,000 and would be the first test for potential buyers. It is safe to assume that to continue the bull trend buyers will have to increase or maintain momentum at this point.
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Additionally, Ethereum could break below $3,000, and Ethereum would be heading towards $3,600 in what the cryptocurrency analyst refers to as a spring. The digital asset would then have consolidated another rally and likely pushes up to $4,000.
Trades in Ethereum above $2,800 Source: TradingView.com| Source: ETHUSD on TradingView.com
The flip side is that this could cause a decline in digital assets. Ethereum could fall below its resistance level and then drop to the next level, which would be supported by significant support. This level has been shown over the last few weeks to be $2,500.
Ethereum traded in the green at $2.759. The chart shows that Ethereum is in a fight between bulls and bears. This can be seen by the trend lines showing zig-zag behavior.
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