The Fed’s decision bolstered the bullish rally in the crypto industry. For ethereum (ETH), the definitive break of this critical hurdle could be decisive. But for now, the price is stagnating around this level.
A level that constitutes a major resistance
The slowdown in the interest rate has been beneficial for the crypto market. Indeed, after the Fed’s release on Wednesday, bitcoin (BTC) gained 6% in value. While the second crypto by capitalization was able to recover 8%. While the macroeconomic situation seems favorable for cryptos, ethereum (ETH) faces an obstacle. This is the opening price of The Merge, which sits at $1638.
Indeed, the post-merge situation has been deplorable for ETH. Unexpectedly, the value of this precious crypto plunged after this historic event. Becoming greener, this transition should have skyrocketed the value of Ether (ETH). However, it didn’t really shake the market. Since then, this level ($1638) has been a major resistance for ETH buyers and hodlers. Right now, the price is trying to break through this hurdle, with the Fed becoming less aggressive in raising the key rate. So, a battle between buyers and sellers is going on right now, as Ether (ETH) stagnates around this critical level.
Ether (ETH) at 2000 dollars?
If the bullish momentum since the beginning of the year continues, we can envisage further upside for ETH. Which is very likely given the structure of bitcoin (BTC), which is currently very bullish. Thus, most altcoins will have to follow in the footsteps of the queen.
For Ether (ETH), the next relevant level is found at the psychological zone of $2000. It is therefore an ideal level to place a price target, if you take a buy position. For the entry point, this will be the area of demand closest to the 50% level of the $1600 and $1540 range. The stop loss could be placed a few points below this range.
Indeed, it could be that the price makes a correction first, before continuing its bull run.
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