- Ethereum continues to see a lot of noisy behavior, and the Wednesday session was rather choppy.
- By the time the dust settled, we ended up with a neutral candlestick heading into the FOMC interest rate decision.
- It’s not so much about the interest rate decision itself, it’s more about the press conference and the statement and what the market sees as the trajectory of interest rates for the United States, which will have a major influence on what happens with risk appetite, and perhaps more importantly risk assets such as Ethereum.
Bitcoin Still Influences
Keep in mind that Bitcoin also has an influence on the theorem, so that might be your first signal. If Bitcoin ends up rallying at this point in time, the market is likely to continue to see the theorem follow suit, because the 2 markets tend to move in the same overall direction given enough time. The $4500 level is of course an area that has been important a couple of times, as it has been both resistance, and now is starting to show support.
Top Forex Brokers
That being said, the Federal Reserve will have a major influence on what happens next due to the fact that the interest rate decision will have a lot of influence on what happens next with the overall risk appetite of traders around the world. If risk appetite starts to fall, that is not good for Ethereum, nor is a good for any other crypto asset. However, if we get a massive “risk on move”, then Ethereum becomes a great way to play the alt coins, as it is the backbone for most of them and therefore it becomes the de facto way to take advantage of that.
Recently, we have been consolidating between the $4000 level at the bottom and the $8800 level in the top and as a result it makes quite a bit of sense that we continue to go sideways as we are basically in the middle of that range. However, I expect a lot of volatility and potentially an explosive move in one direction or the other after the Federal Reserve, perhaps giving you the next $500 move just waiting to happen.
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