Ethereum (ETH), the prominent altcoin, currently holds a substantial market position as bullish forces have effectively recovered the price from a crucial support level. As we approach the highly anticipated FOMC meeting, investors are keeping a close eye on Ethereum and the altcoin market for potential implications. The expectation of a significant rate hike by the Fed has led analysts to predict significant volatility in the price of ETH.
Ethereum Expectations After FOMC Meeting
As the financial and crypto markets eagerly await the upcoming Federal Open Market Committee (FOMC) meeting, speculation is rampant about its potential impact on Bitcoin and the altcoin market. The FOMC will announce its decision on interest rates tomorrow, Wednesday, July 26 at 2:00 pm EST, followed by a press conference with Federal Reserve (Fed) Chairman Jerome Powell at 2:30 pm EST.
The CME FedWatch tool indicates that a vast majority of the market (98.9%) expects a 25 basis point increase. The real tension, however, lies in the aftermath of this decision and whether it means the end of the cycle of rate hikes.
After tomorrow’s announcement, the market is predicting that the Fed will keep key rates high for an extended period of time. The earliest possible rate cut is foreseen for March 2024, if not later in May.
Investors in Ethereum should maintain a balanced perspective. Ethereum has bounced back from traditional economic events, but it is not entirely immune to larger macroeconomic trends.
The upcoming FOMC interest rate decision and subsequent statements from Jerome Powell should be closely watched by investors. Any hints about future rate hikes could have significant implications for Ethereum, potentially leading to further market adjustments.
What’s next for the ETH price?
The price of Ether recovered from the $1,830 level, with bulls attempting to push the price past the 20-day exponential moving average (EMA) to $1,865. However, bears are strongly defending a strong increase as ETH received multiple rejections. At the time of writing, ETH price is trading at $1,858, up more than 0.6% in the past 24 hours.
Currently, bearish traders are trying to drag and hold the price below $1,820, paving the way for serious negative moves. If sellers succeed, ETH price could initiate a correction towards USD 1,740. This drop would suggest that the price could stay in the $1,650 to $1,750 range for a long period of time.
However, if the price continues its current gains and surpasses the 20-day EMA, it would indicate robust buying at lower levels, possibly paving the way for a rally towards $1,904. ETH price may rise towards the $2K level if it breaks above the crucial $1,978 resistance.