Ethereum price was trading higher earlier on Thursday, extending its two-day winning streak after the Federal Reserve announced an interest rate hike. As of the time of writing, the second-largest digital asset was trading 1.91% higher at $1673.21.
Fed Turns Dovish
Ethereum price has staged a strong recovery since the start of the year, posting a 39.86% increase in the year-to-date. ETH’s total market cap has climbed by more than 5% in the past 24 hours as the total volume of the altcoin traded jumped 59%.
Data by CoinMarketCap shows that the crypto market sentiment has been positive over the last day. The global crypto market cap has increased by 3.83% over the last day, while the total crypto market volume edged 36% higher.
The Federal Reserve increased its benchmark interest rate by 0.25% on Wednesday, its smallest interest rate hike since March last year. Fed officials warned that “ongoing increases” would be needed to slow down inflation. Fed Chair Jerome Powell said that he does not expect the Fed to cut interest rates in 2023.
The Federal Open Market Committee’s (FOMC) dovish tilt in interest rate from 4.5% to 4.75% is the highest level since September 2007. The European Central Bank (ECB) and the Bank of England (BoE) are expected to increase interest rates by 0.5% later today.
Ethereum Price Analysis
Ethereum price has breached the important level of $1,600 and has been hovering slightly above this level over the past day. The largest altcoin by market cap has been moving above the 50-day and 200-day exponential moving averages. It has also remained above the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has been moving sideways for the past few days, after slipping below the overbought zone.
Therefore, the Ethereum price is likely to edge higher as buyers eye the resistance level at $1,799.40. A move past this resistance will have bulls targeting the important resistance level at $2,000. However, a move past the support at $1,500 will invalidate this bullish view.