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Ethereum Spikes Above $2,700 After Fed Announcement, What Now?
Ethereum has moved above $2,700 following the Fed announcement yesterday. The highly anticipated meeting had been concluded, coming out that the Fed had increased interest rates by 0.25%. Ethereum has responded positively to the news and had rallied out of the slump it had been in since the last dip. Now the digital asset sits above $2,700 but it is still far from stable at this price point.
What The Rally Did
Ethereum’s rally on Wednesday was a welcome one, showing more bullish tendencies towards cryptocurrencies following the Fed’s decision. After completely smashing the $2,522 resistance point, the digital asset is on to test much bigger resistance points. This resistance being mounted by bears just below $2,800 has seen ETH ricochet back down.
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Nevertheless, the recent rally has set the digital asset on a bullish path, even if just in the short term. It is now trading above the 20-day moving average, meaning sentiment towards purchasing the asset at these prices is shifting towards the positive.
Indicators point towards significant support forming for the cryptocurrency just above the $2,600 level. But at its current price, the next resistance point lies at $2,839. A simple break above $2,800 would make easy work of this as this is the position that bears need to hold. Otherwise, a fall would send the digital asset once more to the $2,600 level, somewhere that bulls want to avoid going forward.
Ethereum On A Bull Trend
With the market in its current trend, there are important points that digital assets need to touch to establish another bull run. For Ethereum, this lies above $2,800 according to crypto analyst Justin Bennett. This position would expose the digital asset to $3,000 where the next test would lie for buyers. One can safely assume that buyers would need to maintain or even increase momentum above this point to keep up the bull trend.
Related Reading | Today’s Crypto Boost: The FED, Inflation, And Global Adoption
Furthermore, a break above $3,000 and Ethereum be on its way to $3,600 in what the crypto analyst describes as a spring. At this point, the digital asset would have solidified another rally, likely pushing up towards $4,000.
ETH trading above $2,800 | Source: ETHUSD on TradingView.com
On the flip side of this is the drop that could keep the digital asset down. If Ethereum closes below the next resistance point, then it could be back down to its next level with significant support which has proven over the past couple of weeks to be the $2,500 level.
At the time of this writing, Ethereum is trading in the green at $2,759. It is currently a battle between the bulls and the bears, evidenced by the zig-zaggy trend lines displayed on the chart in the early hours of Thursday.
Featured image from CNBC, chart from TradingView.com
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