Yesterday, the Fed raised the interest rate again by 75 points. In the crypto market, volatility was at the rendezvous. Many expected a rise after the release. However, it seems that the bulls lack the strength to propel Ethereum to $2000.
Ethereum (ETH): The bullish structure begins to break
The Fed’s release rocked the markets yesterday. After the 75 bps increase in the interest rate, most of the biggest cryptos saw volatility. In the case of ETH, its price rose by 3% right after the Fed’s decision. However, this rise was followed by a 6.5% drop. With this volatile movement, it seems that the bullish structure of Ethereum has broken. However, this is only the first step. Thus, a second condition will be needed to confirm the breakout of the bullish structure.
Indeed, a short-term “bullish structure” has formed on the price of ETH. That is, higher and higher peaks and troughs. However, yesterday’s high ($1618) could not overcome the October 29 high ($1662). Despite the catalyzing event, it appears that the bulls lack the strength to push Ethereum’s price higher. So, yesterday’s price move broke the pattern of higher highs. But before confirming anything, we will first have to wait for the breakout of the low at $1487.
If the price breaks this low, we can expect a descent towards $1432. This is a “Gap” which can act as a support. After bouncing off this level, the price might retrace to the “Quasimodo” level at $1576. After that, the bear market could continue and deepen.
The price is following a descending parallel channel
For several days, the price of ETH has been following a descending channel. This could be good news for hodlers. Indeed, this figure generally precedes a bullish movement on the Ethereum. However, the sudden rise after the Fed’s decision fooled the bulls. For followers of the “price action” strategy, this is called a “fake out”, or false breakout. This movement demonstrates that it is the sellers who remain in control.
If the price breaks this figure upwards, we can consider a bullish phase on Ethereum. The first resistance can be found at the September 15 open price at $1638.52. This is the date of the completion of The Merge. And just above it stands the next key resistance around $1660.
If the price breaks through these resistances, Ethereum could be seen at $1800 by the end of the month. The eternal second could even reach $2,000 by the end of the year.
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