Ethereum price has continued to benefit from the improved market sentiment. Even so, it may remain subject to curbed gains in the ensuing sessions amid uncertainties over where the Fed’s interest rate hikes are headed.
The crypto fear & greed index is one of the key tools that measure the overall mood of the market. Notably, the index has been in the greed end of the spectrum in recent sessions after exuding fear for several months. Even so, compared to last week’s greed level of 62, it was at 56 on Thursday.
As is often the case, the market sentiment stems from the key drivers and is evident in the asset’s price movements. On the one hand, investors remain hopeful that the worst of the crypto winter that shaped the industry in 2022 is over. Besides, as stated in the latest Fed meeting minutes, the bank appears to be navigating towards an endpoint of its current rate hikes.
Even so, most Fed officials are in agreement that more interest rate increases are needed to deal with the stubbornly high inflation. The minutes failed to expected cues on where the hikes are headed. As such, ethereum price may remain range-bound as investors await further signals from crucial economic data and March’s Fed meeting.
Ethereum price outlook
A look at ETH/USD daily chart shows that the crypto continues to trade above the 200 and 50-day EMAs despite the losses recorded in the past three sessions. In fact, in the past weekend, the medium-term 50-day EMA crossed the long-term 200-day EMA to the upside; forming a golden cross. Amid the crypto winter that defined the sector in the past year, the death cross has been in place since 24th January 2022.
Based on both these technical indicators and the fundamentals, I am cautiously bullish on ethereum price. In the short term, the range between 1,745.96 and 1,600.25 will be worth watching.
The bulls may not gather enough momentum to break the resistance at the aforementioned YTD high ahead of the next Fed meeting in March. However, if that happens, the crypto may retest September 2022 high of 1,795.45.
On the lower side, I expect 1,537.23 to be a steady support level for ethereum price in the ensuing sessions. Notably, it is the point of intercession for the 50 and 200-day EMAs.