Ethereum dropped below $1,300 on Thursday, as markets continued to react to the U.S. Fed’s latest decision to raise interest rates. As it struggles to keep rising prices from escalating rates, the Federal Reserve increased interest rates by 0.75% following speculation about a 100 basis-point increase. Bitcoin declined further, close to $18,000.
Bitcoin (BTC), which was close to $18,000, fell on Thursday as the markets slipped after the U.S. Federal Reserve policy decision.
The Fed opted to increase interest rates by 75 basis points on Wednesday, with Chair Jerome Powell hinting at further moves, stating, “In my view, there’s a way to go.”
BTC/USD plunged to $18,290.32 intraday, its lowest point in three months.
As you can see, bitcoin dropped slightly below the $18,300 level. However, bulls entered shortly thereafter, sending prices up.
BTC traded at $19217.16 on the date of writing. That’s nearly 1,000 more than its low.
There may be some volatility in prices, however. The 14-day relative strengths index (RSI), which has a ceiling at 42.00 and if maintained, could bring bitcoin back below $19,000.
Like bitcoin, ethereum (ETH) saw its price decline following the Fed’s decision to hike rates, with the token falling below $1,300.
Following a high of $1,384.48 during yesterday’s session, ETH/USD dropped to a bottom of $1,229.43 earlier today.
A similarity was found with BTC: the price decline saw ethereum hit a $1,230 level.
Bulls have since moved to lift the token higher, with the world’s second largest cryptocurrency trading at $1,307.80 as of writing.
The price of the current stock is very close to $1,315, which represents a major resistance level. However, this also means that the RSI has reached a ceiling.
The index currently at 37.67 will have to change to overcome the resistance.
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Following yesterday’s announcement, can we expect crypto prices to rally in the coming days? Comment below to share your views.
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