Ethereum dropped to its lowest level since last Friday during today’s session, as consolidation in crypto markets continued on Wednesday. This comes ahead of this afternoon’s U.S. Federal Reserve interest rate decision. Bitcoin was in red as well, but is still below $20,800
Bitcoin (BTC) continued to trade below $20,800 on Wednesday, as market uncertainty remains high ahead of this afternoon’s Fed meeting.
Markets have not yet priced in the 75-basis point increase, but some investors are looking to receive forward guidance from banks, including a timetable for changing policy.
BTC/USD fell to a low of $20,359.85 earlier in today’s session, less than 24 hours after tracking at a peak of $20,545.35.
The chart shows that the token traded mostly in red over the weekend. This is due to a failure breakout of the relative strength indicator (RSI).
The weekend’s close of trading saw the index fall below a long term ceiling of 63.00, signalling to bears not to enter the fold.
This afternoon’s decision will likely either heighten this bearish pressure, or act as a green light to bulls to once again control sentiment.
Ethereum (ETH), like bitcoin, has declined the most to begin the week. The token fell to a 5-day low.
Following a peak of $1,595.78 in yesterday’s session, ETH/USD dropped to an intraday low of $1,544.08.
This latest move has resulted in ethereum remaining below $1,585 its key resistance level, which was broken for the first-time in more than a month.
As of writing this, the 14-day RSI is currently tracking at 62.74, which is down from yesterday’s peak of 66.71, and below a floor of 65.00.
The gradual decline in the price strength is a sign of slowed momentum. Should delines continue, the 10-day moving average (red) will likely begin to change its direction.
The 60.35 level is the next point of support. If this can be broken, then sentiment could shift.
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Are we likely to see the markets consolidating even after this Fed decision? Comment below to share your views.
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