On Monday Ethereum trades at $1,600, ahead of the U.S. Federal Reserve policy decision. Inflation remains high at historical levels and the Fed expects to raise interest rates by 75bps this week. Bitcoin also rebounded, hovering marginally below $21,000 in today’s session.
Bitcoin (BTC) remained closer to $21,000 on Monday, as markets rebounded from yesterday’s sell-off.
Following Sunday’s low of $20,461.72, BTC/USD surged to an intraday peak of $20,791.67 earlier today.
The move sees the token edge closer to Saturday’s high of $21,080, which was the strongest point the token had hit since September 13.
Looking at the chart, Monday’s surge sent BTC close to its long-term price resistance of $20,800, which hasn’t truly been broken since early September.
The price strength also improved, as the 14-day relative strengths index (RSI), now stands at 61.47. This is very close to its ceiling of 63.00.
BTC will need to surpass $21,000 to gain bullish pressure.
Ethereum (ETH), which traded above $1,600, was also green for the start of the week.
ETH/USD moved to a high of $1,623.68 earlier in today’s session, which comes less than 24 hours after trading at a low of $1,567.57.
Today’s rise in prices comes as the world’s second largest cryptocurrency climbed above its ceiling of $1,585.
The chart shows that the cross-section of moving averages of 10-day (red) and 25 day (blue), seems to have reached a peak, suggesting that momentum is slowing down.
Also, the RSI has entered overbought territory. This could indicate that bears may be preparing for reentry.
Wednesday’s United States Federal Open Market Committee (FOMC) meeting could likely be the trigger which either extends current momentum, or shifts its direction.
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What do you think the Fed rate decision will have an impact on ETH’s potential to rise above $1,700? Comment below to share your views.
Credits for the imageShutterstock. Pixabay. Wiki Commons
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