Ethereum Crashing Before FOMC: To invalidate the previous bullish flag, the price of Ethereum broke out lower from a consolidation zone. A meeting of the Federal Open Market Committee (FOMC) is scheduled for Wednesday. The markets are eagerly anticipating the outcome of this meeting, which will determine whether interest rates will be lowered or increased.
The price of Ethereum was $3,549 during European business hours on Tuesday. This is a reduction of 3.7% in the last twenty-four hours and an additional decrease of 5.9% in the past seven days, according to data provided by Btccraze.
Bears Take Control of ETH/USD, Watch These Support Levels
In the past, ETH’s price fluctuated within a consolidation zone, a component of a more considerable bull flag market structure. As bull flags are bullish, the markets anticipated the pattern would resolve upward. On the other hand, the price of Ethereum Crashing Before FOMC has been under significant negative pressure since the early morning hours of June 11.
Because the price of Ethereum fell below the range, the bull flag displayed on the 4-hour timeframe was rendered invalid. The price action of Ethereum (ETH) is still advancing above the 50-day and 200-day simple moving averages (SMA) in the daily timeframe, even though it is pretty near to doing so.
The price of ETH may continue to fall if bears continue to exert their influence, and it may find support at the 50-day simple moving average, which also corresponds with the 0.5 Fibonacci retracement level. Because of this, the price of ETH will be approximately $3,400. Additionally, there are crucial support sections below between $3,200 and $2,900.
If, on the other hand, the bulls can prevail over the bears. The price of ETH can see a rise and test the bottom border of the range, which is $3,650. ETH may re-enter the range and move sideways between $3,700 and $3,950 before breaching to the upside and heading above $4,200 if it continues to increase. This would be the case if market conditions remain favorable. Currently, the most formidable level of resistance for the ongoing price movement of Ethereum Crashing Before FOMC is $3,650.
Ethereum Price Falling?
A day before the Federal Open Market Committee meeting, the price of Ethereum dropped, and it also occurred at the same time as the price of Bitcoin dropped. The cryptocurrency community thinks that the latest market panic may be traced back to the outcome of the FOMC meeting.
The Federal Open Market Committee (FOMC) is expected to maintain interest rates at the highest level. According to market analysts from Bankrate, they have been in 23 years during the forthcoming meeting. On the other hand, they anticipate. There will be three or fewer reductions in interest rates before 2024 comes to a close. In the meantime, Ethereum’s fundamentals remain robust. The mainnet dominates in fees over Layer 2s, earning twenty times more than the top L2s combined.
Bottom Line
On Wednesday and Thursday, investors will be on high alert for FOMC and PPI statistics, which might impact. The future direction of Ethereum prices and the markets. If the market-damaging FOMC statements and results materialize, Ethereum’s strong fundamentals might help keep the price afloat.
Also Read: After 7 Years, Ethereum Hacker Launders Stolen $ETH
