Ethereum price movements in the past two sessions points to an opportunity for bulls to yield a rally past its two-week range. Even so, that may not materialize in the short term as a hawkish Fed and overall risk aversion continue to fuel the crypto winter.
What’s driving the market?
After relatively low volatility in the second half of December, Ethereum price appears to be attracting more buyers. Even so, the second largest cryptocurrency continues to hover around the psychologically crucial zone of $1,200.
On the one hand, fear continues to shape activities in the broader crypto sector. The risk aversion, which impacted the digital assets for a significant portion of 2022, was founded on the major central banks’ aggressive monetary policies and FTX-related contagion concerns.
Seeing that the Fed remains keen on further hiking interest rates to deal with the persistently high inflation, Ethereum price will likely remain under pressure in the ensuing weeks. However, with hopes that the Fed will pivot as the year unfolds, the crypto may record a significant recovery in the medium term.
Ethereum price outlook
As seen on its daily chart, Ethereum price has been hovering around the upper border of the Bollinger bands for the second session in a row. While has been trading around the psychologically crucial zone of 1,200 for over two weeks now, it recorded a significant move on Wednesday by following a 5% rise.
A look at both the fundamentals and technicals signal that Ethereum price may remain subject to moderate volatility in the short term. Even so, the bulls have potential to yield a rally to the upper target of 1,400. However, for that to happen, the crypto will need to attract enough buyers to break the resistance at 1,365.54.
In the short term, the range between 1300.44 and 1,150.71 will be worth watching. Indeed, a move below the aforementioned support level will invalidate this cautiously bullish thesis.