Ethereum price made significant gains in October. In the new month, the bulls are eyeing the all-important zone of $2,000. Notably, the Fed meeting set for the current week is one of the first crucial tests for the bulls on their path to the aforementioned level. As at the time of writing, ETH/USD was at $1,577.97; up by 0.33%.
Fundamentals
In the just concluded month of October, Ethereum price recorded a relatively strong performance amid hopes that the Federal Reserve will temper its aggressive rate hikes towards the end of the year. As is the case with other cryptocurrencies and broader class of riskier assets, an environment of high interest rates has been weighing on the altcoin.
Even so, its gains have been curbed by the uncertainty over the Fed’s position. Granted, Fed officials have maintained that the bank will continue raising interest rates despite the economic pain as it strives to deal with high inflation. As a result, traders will be keen on the Fed interest rate decision scheduled for release on Wednesday. US job number will also offer cues on the situation.
Even with the gains recorded in recent weeks, it is not all rosy for the Ethereum ecosystem. For instance, its network had handled NFTs worth $354 million in September. However, this figure dropped to about $275 million in October. In fact, data released by CryptoSlam highlights an even larger decline from its peak of $3.2 billion in May.
Ethereum price prediction
In November 2021, Ethereum price surged to a record high of 4,874.93. Since then, it has dropped by close to 70%.
As shown on its daily chart, ETH/USD is trading above the 25 and 50-day exponential moving averages. In fact, the two technical indicators have formed a golden cross, which happens when the short-term (25-day EMA) crosses the long-term (50-day EMA) to the upside. The formation usually signals further gains.
In the ensuing sessions, bulls will be eyeing the critical psychological zone of 2,000. Even so, more buyers are needed to break the resistance at 1,656.83 and move a notch higher to the aforementioned target. On the lower side, a move below the support level at 1,485.23 will give the bears an opportunity to retest the lower zone of 1,429.02.
