Ethereum price remained close to the 7-month high hit late last week as a risk-on mood further boosted cryptocurrencies. The focus is now on the Fed interest rate decision and subsequent remarks by Jerome Powell later on Wednesday.
Fundamentals
In recent sessions, ethereum price has found support in the banking crisis that has seen the collapse of Silvergate Capital, Silicon Valley Bank, Signature Bank, and Credit Suisse. The crisis pumped liquidity into the crypto industry; an aspect that boosted ETH/USD to a 7-month high.
At the same time, easing concerns over the turmoil has the cryptocurrency benefiting from the risk-on mood. Compared to the neutral level of 50 in the past week, the crypto fear & greed index is currently at a greed level of 62. Granted, this is a decline from the prior session’s reading of 68.
The focus is now on the Fed interest rate decision set for release later in the day. Indeed, this is one of the central bank’s toughest calls in years. On the one hand, it has insisted on the need to continue with its interest rate hikes in order to deal with the stubbornly high inflation.
At the same time, the banking crisis that may spread globally may have the bank easing on its rate increases. In particular, economists expect a hike of 25 basis points. It will also be interesting to hear Jerome Powell’s comments following the FOMC decision.
Ethereum price prediction
ETH/USD hovered around 1,800 in early Wednesday trade as investors await further cues from the Fed interest rate decision. Notably, it remains close to the 7-month high it hit late last week at 1,846.30.
A look at its daily chart shows that ethereum price continues to trade above the 25 and 50-day exponential moving averages. These technical indicators confirm that the bulls are still in control of the market. Besides, an RSI of 62 shows that the crypto still has room for more gains.
With the Fed decision in focus, the range between 1,745.70 and 1,847.60 will be worth watching. In reaction to the central bank’s stance, ethereum price may rise further to 1,905 or higher towards its next target at 2,016.02.
On the flip side, easing of the buying pressure may push the altcoin past the aforementioned range’s lower border to the support levels of 1,670.46 or 1,618.32. These support zones are along the 25 and 50-day EMAs respectively.
