Ethereum price dropped below the crucial level of $1,300 after lower-than-expected US inflation data boosted it past this level earlier in the week. As the markets digest the Fed interest rate decision, I expect the altcoin to make rather subtle movements for the remainder of the week.
The crypto fear & greed index, which tracks the main emotion driving the sector, summarizes the ethereum price movements. The recorded fear level of 31 was an improvement from the previous session’s 30 and last week’s extreme fear level of 25. The closer the figure is to zero, the higher the fear levels and subsequent risk aversion.
On the one hand, an improvement of the market sentiment explains why ethereum price losses were subtle even after the hawkish remarks by the Fed Chair. Even so, seeing that fear remains the key emotion in the crypto market is an indication that more investors are reluctant to place their funds on risk assets.
After the lower-than-expected US inflation data, traders got into a take-profit mode. Even so, ETH/USD remained quite steady even after the Fed signalled that rate cuts may not be approved until 2024. Based on these fundamentals, coupled with the technicals, the altcoin may not be subject to an aggressive dip at least in the short term.
Ethereum price prediction
Even after the highly anticipated US inflation data and Fed interest rate decision, ethereum price remained range-bound as it recorded rather subtle movements. Granted, it dropped below the crucial level of 1,300 after rising above it earlier in the week. Prior to that, the aforementioned level had been a steady resistance zone for the altcoin for about a month.
As seen on its four-hour chart, ETH/USD dropped below the 25 and 50-day exponential moving averages. Even so, I expect it to continue finding support at 1,244.90. Below this level, the bulls will be keen on defending the psychologically crucial support zone of 1,200. However, this thesis will be invalidated if ethereum price rebounds past 1,353.94.