This week has been volatile for Ethereum (ETH) and the crypto market. The releases of major macroeconomic news have indeed shaken the markets. With a 3.4% decline yesterday, Ether has erased all gains made since the start of the week.
A Volatile Week for Ether Due to Interest Rates?
The economic calendar is busy this week. The Fed and the ECB were indeed on hand to publish important macroeconomic data. Tuesday saw the publication of the CPI, which reflects the rate of inflation in the United States. This fell by 0.2%, causing an upward explosion in Ether. On Wednesday, the Fed’s interest rate decision sent the price of ETH plunging. Indeed, this rate has increased by 0.5%, making the dollar more “precious” than the other assets backed by it. But not that, just yesterday, the European Central Bank (ECB) also published its decision on the interest rate. Wanting to fight against inflation, the ECB joins the Fed in raising its key rate by 0.5%. However, this looks less aggressive than recent increases, which were 0.75% in October.
This ECB decision also made the Euro more valuable. Thus, most other assets, including cryptos, fell. For ether, yesterday’s 3.5% drop wiped out all the gains made from the lower inflation rate. Thus, the price of Ethereum is currently moving close to its opening price for the week at $1265.32.
What should be considered?
Yesterday’s session saw the price of Ethereum approach the opening price of the week, but also support. This is the lower part of the short-term uptrend channel. Thus, we can envision a slight run up from this support to close the week above the psychological zone of $1300. In addition, we also note the presence of a figure ” Bullish Bat “. This pattern should initiate a rise in price above $1350.
Otherwise, that is to say, if the price crosses this channel downwards, we can consider a decline towards $1220. This is the closest critical support. A break of this new support would mean Ether dropping below $1070.
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