In recent market activities, Ethereum has faced a strong resistance level, which market analysts relate to the latest Federal Open Market Committee (FOMC) decision. The current FOMC policy of keeping interest rates intact has brought volatility to the market.
Crypto analyst VeLLa Crypto highlighted that Ethereum tested the upper level of its recent trading range, nearing $3,884.85, only to face a rejection that pushed its value downward. This price movement indicates a crucial resistance zone that Ethereum struggled to overcome. AT press time, Ethereum’s price hovers around $3,495.97, which is a critical level that could determine its short-term direction in the market.
Following the FOMC announcement, Ethereum’s price trajectory suggested a bearish outlook, as it failed to break through the key resistance level. The analyst predicts that Ethereum might sweep the local lows, a term used to describe the action of dipping into lower price ranges to test support levels before possibly regaining value. The immediate support level for Ethereum lies at $3,422.95. If this level holds, it could serve as a springboard for future price increases. However, a break below this level could signal further declines.
World’s Largest Bank Recognizes Bitcoin and Ethereum as the Digital Equivalents of Gold and OilThis recent price action forms part of a broader consolidation pattern, noted by the formation of a triangle in the price charts. Such patterns often indicate a period of market indecision that eventually leads to a breakout or breakdown, depending on external market forces and investor sentiment.
Macroeconomic indicators such as the FOMC’s interest rate policies have historically influenced the liquidity and attractiveness of alternative assets. The decision not to cut the hikes has played a significant role in the cautious approach taken by investors, leading to the observed price rejection for Ethereum.
