Ethereum Price Holds at $1,500, Why There’s Hope For The Bulls

After yesterday’s Federal Open Market Committee (FOMC), the Ethereum price and the crypto market have held their ground. Market participants hoping for a return back to the former range could be disappointed. Macro-economic forces may have caused this. 

As of this writing, Ethereum trades at $1.540. There has been a 2% gain in 24 hours and an 8% loss over the last seven days. This trend is also followed by other cryptocurrencies that are in the top 10 crypto market capitalizations, however the majority of them show positive momentum. 

Ethereum Price ETH ETHUSDT
ETH’s price trends to the upside on the daily chart. Source: Tradeview ETHUSDT

Ethereum Prices Maintain Positive Outlook

Many market participants were shocked by the current Ethereum price movement. Market participants had expected to see downside pressure following the U.S. Federal Reserve’s (Fed), hawkish stance. 

The financial institution increased rates by 75 basis points (bps), in line with market expectations. Jerome Powell, the Fed’s Chairman, did not surprise us and they will likely continue their current path for 2022. 

So, even though equities are losing ground, crypto markets can continue to grow. At least for tomorrow’s release of economic data by the U.S., all major narratives about the new asset have been suspended. 

Justin Bennet, an analyst in Crypto Markets talks about the price movement that has occurred recently. said

It would be ironic if markets rallied after Powell’s attempt to squash any hope at Wednesday’s FOMC. I’m not ruling it out. And to be honest I’m eyeing a few areas during this pullback in case we get it (…) Waiting for markets to digest FOMC and avoiding Friday’s NFP volatility for now.

QCP Capital has released a separate report that shows the Ethereum price continues to be bullish over the long term. The first believes that “The Merge” impact on the ecosystem will become palpable in the coming months. 

In that sense, “The Surge,” the next major milestone for Ethereum, will begin exercising more influence over the crypto market. This event will complete Ethereum’s transition to a more scalable ecosystem with a project transaction per second (TPS) almost twice as high as Visa and Mastercard at 100,000. 

Additionally, trading firms noted a significant decrease in ETH supply to the market. The amount of ETH supplies issued is now at 7,000, compared with the 400,000 which would have been issued using the older consensus. Each of these elements are likely to add value to the ETH. Even if they are less influential than risk assets, this is a good thing. 

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