As an experienced market analyst, I believe that the FOMC statement on June 12 brought about a significant reaction in the crypto markets, specifically Ethereum and Bitcoin. The brief surge in price following the announcement was a result of investors anticipating positive news from the government agency. However, it’s important to note that this rally was short-lived as prices soon retraced, leaving strong support areas at $3,420 for Ethereum and $66,000 for Bitcoin.
After the Federal Open Market Committee (FOMC) released their statement on June 12th, the price of Ethereum momentarily surged to reach $3,655. Similarly, Bitcoin experienced heightened volatility, peaking at a price of $70,000 before subsequently pulling back.
During European trading sessions, Ethereum’s price was approximately $3,498, representing a 0.5% drop over the past day and a significant 9.5% decrease in value over the last week. In contrast, Bitcoin maintained a position around $67,349 based on CoinGecko statistics.
Ethereum Price Analysis: Dovish Comments From FOMC Officials Prompt Bulls to Gear for Rally
As an analyst, I’ve observed that both Ethereum (ETH) and Bitcoin prices experienced a notable upward trend within just a few hours following the Federal Open Market Committee (FOMC) meeting. In fact, ETH price soared by approximately 6% to reach a new peak of $3,655 within the subsequent 20 hours. Similarly, Bitcoin price exhibited a robust performance with a 6% increase that propelled it past $70,007.
After the Federal Open Market Committee (FOMC) released their statement, the prices of Ethereum (ETH) and Bitcoin (BTC) retreated as investors chose to sell following the news. At present, Ethereum is exhibiting a downward trend, lying beneath its 50-day and 200-day simple moving averages (SMA), with notable support at approximately $3,420 and $3,260. The $3,655 mark presented substantial resistance, leading to a rejection and the formation of a long wick. Bulls are now keeping an eye on the $3,200 level as a potential area for rebound, in order to gather enough momentum to surmount the $3,655 hurdle.
Bitcoin saw a brief triumph, reaching a new peak of $70,000 for the first time since June 10. The cryptocurrency possesses robust backing at the $66,000 level and might not dip below this price mark in the near future. Although Bitcoin’s price is still under the 50-day and 20-day Simple Moving Averages (SMA), it momentarily surpassed these benchmarks yesterday. Bitcoin investors could employ $66,000–$67,000 as a rebound point to retake control of $70,000 and $72,000 price goals in the upcoming days.
FOMC Press Statement is Bullish for Crypto
As an analyst, I’d interpret the Federal Open Market Committee (FOMC) statement from yesterday as follows: The markets reacted predictably to the FOMC announcement with increased volatility. In their press release, the Fed confirmed that interest rates would remain unchanged for the seventh consecutive meeting, neither increasing nor decreasing. After a unanimous decision, there will be no rate cuts until we can be certain that inflation stabilizes around the 2% target. Consequently, the interest rates will continue to be set at the range of 5.25% to 5.5%.
As a researcher, I’ve analyzed the latest report from the Federal Reserve, which showed robust economic expansion, impressive job creation, and low unemployment rates. Nevertheless, the Fed expressed uncertainty about their future economic outlook. The projected number of interest rate cuts in 2024 has been reduced from three to one, with most cuts now anticipated in 2025. These indicators suggest a gradually improving economy, but at a snail’s pace. A thriving economy is advantageous for the crypto markets due to increased investor confidence and economic stability.
Bottom Line
As an analyst, I believe Ethereum’s price could bounce back up to $4,000 in the near future due to positive economic reports that are boosting investor confidence. Previously, Bitcoin bulls successfully defended a significant support level. Following the buy-the-rumors phenomenon where investors purchase assets based on optimistic news, both Bitcoin and Ethereum prices may surge once profit-taking has ended.
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2024-06-13 08:58