Altcoins
Ethereum Price Shies Away From $20K as Markets Brood Over Potential Interest Rate Hikes
Ethereum price plunged on Wednesday as rumors of a potential Fed interest rate hike curb the asset’s gains. At the time of writing, the altcoin had plunged 6.14% to $1,973.26. Ethereum’s total market cap has dropped by more than 5% over the last day to $236 billion, while the total volume of the coin traded jumped by nearly 52%.
Fundamentals
The global crypto market was in the red on Wednesday as markets price in an 86% chance of the Federal Reserve hiking interest rates. The largest coins, Bitcoin and Ether, led the losses in the market, lowering the overall sentiment in the crypto market. Bitcoin price fell by more than 3%, changing hands at $29,000.
Ethereum price dropped sharply below the important level of $2,000, following a 12% rally over last week that pushed it to its highest since August 2022. The drop in crypto prices comes in the wake of the uncertainty around the outlook of the Fed’s monetary policy meeting later in May and a stronger dollar.
Atlanta Fed President Raphael Bostic said that he anticipates a 25-basis point interest rate hike in May and then a hold. St Louis Federal Reserve President James Bullard also said that he favors a higher terminal rate of between 5.50% and 5.75%. In Europe, European Central Bank officials have become jittery about inflation and suggested further interest rate hikes.
Markets were brooding on the latest UK inflation data earlier on Wednesday, which showed that consumer prices rose 10.1% over the 12 months to March, down from 10.4% in February but ahead of consensus estimates of a 9.8% increase. This has fueled expectations that the Bank of England (BoE) could further hike its interest rates in its next monetary policy meeting.
The US dollar strengthened on fears of a looming interest rate hike by the Federal Reserve. A strengthening dollar could hurt risk assets such as cryptocurrencies, as many investors tend to shift to traditional financial institutions. US Treasury yields also ticked higher on Wednesday, with the yield on the 10-year Treasury inching higher to 3.606% and the 2-year Treasury rising to 4.268%.
Ethereum Price Analysis
Ethereum price wiped gains from its previous trading session, dropping below the important $2,000 level. Ethereum continues to trade above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has declined sharply to the neutral zone.
As such, I expect the Ethereum price to continue finding support above the $1,900 level in the short term. A drop below the level will have bears eyeing the next logical support level at $1,805.40. However, a breach of the $2,000 level might push the ETH price to its 10-month high of $2,150.
ETH Price Chart
Ethereum price has been in consolidation mode for the past few days as macroeconomic concerns send investors into conservation mode. At the time of writing, Ethereum was trading slightly higher at $1,832.32. ETH’s total market cap, as well as its total volume, have increased over the past 24 hours. It currently has a market capitalization of $220 billion.
Fundamental Analysis
Ethereum price has been moving sideways for the past few days, in tandem with the global cryptocurrency market as investors shift their focus to US debt ceiling talks and Fed’s monetary policy outlook. The global crypto market cap has increased by 1.30% over the last day to $1.13 trillion, while the total crypto market volume fell by more than 7%.
The cryptocurrency market has been moving sideways for the past few days characterized by a mix of bullish and bearish trading sessions. The recent trend in the cryptocurrency market has been amid the uncertainty around the outcome of the US debt ceiling talks and the prospect of a US government default. With less than a week to default, investors have shifted to conservation mode, especially around risk assets such as cryptocurrencies.
Potential interest rate hikes by the US Federal Reserve have also been weighing on the markets. Traders have ramped up bets of an interest rate hike in the Fed’s next meeting in June after several policymakers sounded their support. According to a gauge released on Friday,…
Polkadot price has been under intense pressure for the past few days amid the recent bearish sentiment in the crypto market. At the time of writing, DOT was barely unchanged, trading at $5.351. The altcoin has dipped more than 25% for the past month but remains 24.23% higher in the year to date. The asset’s total market cap has slipped over the last day to $6.343 billion, ranking it the 13th largest cryptocurrency.
Is the Worst Yet to Come?
Polkadot price has been consolidating for the past few days amid the recent sell-off in the crypto market. Statistics by Coinmarketcap show that the global crypto market cap has dropped 1.29% over the last day to $1.13 trillion, while the total crypto market volume decreased by nearly 7%.
The biggest cryptocurrencies, Bitcoin and Ethereum, have been in a freefall for the past few days, falling to $26,880 and $1,807, respectively. Most altcoins, including BNB, Cardano, Solana, Shiba Inu, and Avalanche, have plunged seeing that most altcoins move in tandem with the performance of heavyweights Bitcoin and Ethereum.
Looking ahead at the global market mayhem with the US debt ceiling debate and the US banking crisis, investors expect more downside in the crypto market. The US dollar has continued growing stronger, hovering around a six-month high against the Yen, as optimism around the US debt ceiling talks in Washington raised expectations of higher-for-longer interest rates.
Two…
Ethereum price has been in the green for two consecutive days but is not out of the woods yet, as the altcoin remains below the crucial $1,900 level. At the time of writing, ETH was trading 1.51% higher at $1,826.50. Despite the current slight improvement in the asset’s price, Ethereum remains 2.38% lower in the past week and 15% below its highest level this year. The asset’s total market cap, as well as its volume, has improved over the last day.
Fundamentals
Ethereum price has been setting the path for both major and minor altcoins in the crypto market, seeing that most altcoins move in tandem with ETH’s performance. The Ethereum price has been trading around $1,800 for the past few days amid uncertainty regarding where the market would go. Ethereum, the largest altcoin by market cap, has plunged more than 10% in the past few days.
Concerns by investors about the coin’s losses could have driven the ETH price lower. Even so, optimism in the market has outweighed fear, preventing a drastic downfall of the asset. Most of the fear in the market was visible in the whales, who seemed to have bolted at the first sight of a potential downward trajectory.
The cryptocurrency market was in the green on Monday, hinting at a recovery on the back of a weak US Dollar. Data by Coinmarketcap shows that the global crypto market cap…
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Ethereum Price: ETH Has Managed to Flip Major Hurdle at $1,800
