After the Federal Reserve’s August 26 meeting, many crypto coins fell, including Ethereum and Bitcoin. ETH trades in the reds and losing as of August 28th, 29. However, it appears that things are returning to normal. At the closing of Ethereum’s market, on August 29, Ethereum began a steep climb.
Intraday, the coin reached $1.556.31 at its highest and ended trading at $1,553,04. It was at $1,427.73 on August 29th. As of the writing time, it stands at $1571.
Market cap has increased 9.74% to $194,421,528,423 due to the price rise. However, analysts presented a chart indicating that ETH’s price may still drop to $1,000.
Ethereum Chart Shows Possible Bearish Trend
Fairlead Strategies’ Kate Stockton said that this chart indicates that Ethereum broke below the initial support of the 50-day MA. This increases the downside risks associated with short-term momentum. Also, the weekly stochastics have taken a downturn, which hasn’t happened since April. These are signs that ETH could retest support for $1,000
Uncontrollable fluctuations in Ethereum’s prices continue. Merge in September was meant to boost it. The crypto market is experiencing volatile swings in price and things aren’t going as planned.
In August, ETH reached a high of $2,000. The price of Ethereum has fallen almost 25% since August 1, when it reached $2,000.
Unfortunately, Fed Jackson Hole annual meeting didn’t help matters. Cryptos including Ethereum fell after the meeting. Many people also started to sell their ETH holdings after Jerome Powell became hawkish.
Macros Have Seemingly Won
Following the Merge, there was optimism. It is expected that the upgrade will increase Ethereum network’s capacity and enable more transactions. Many crypto investors anticipated a rise in prices after the Merge. The downward trend discouraged many.
According to a leading analyst, he told his followers: Twitter,The Merge might have been priced in. Rager claimed that Ethereum surged by more than 2x in a single month when Rager was referring to the Upgrade. Asset prices are currently being affected by macro factors like the ongoing inflation. Not only did stocks plunge after the Feds meeting but so did their prices.
ETH could still see a positive trend after September 6’s first network fork. Analysts believe the coin could show some strength and rise to $2,200 if all goes well. The coin is currently climbing and, if it continues to climb, this prediction could come true.
Featured image taken from Pixabay. Chart from TradingView.com