Ethereum (ETH) is back in the red after rising 10% since the FOMC release on Wednesday. In today’s session, the eternal second falls below $1300. Wednesday’s drop comes after the Fed and the Bank of England decided to raise key rates. If the bear market continues, the value of Ethereum (ETH) could drop towards $1000.
Ether (ETH) is back in the red!
Correlated with bitcoin (BTC), ether (ETH) saw its price drop around $1250. This comes as the US benchmark, the S&P 500, has edged closer to the June low over the past few days. The same is true for gold. The bear market intensifies following the increase in the Fed’s key rates.
During today’s session, the second-largest crypto descends towards the support zone around $1280. On the other side, we can also see a cross between two moving averages: 10 days and 25 days. This could be a short-term bearish signal that will push Ether (ETH) into the red again.
As for the RSI, this technical indicator is at 37. The oscillator is thus approaching the oversold territory. What could be a signal ofpurchase for short-term traders.
In sum, Ether has lost 12% of its value in the past seven days.
3.5% rise at the start of the US session
As usual, the opening of the American session is characterized by a movement contrary to the general trend during the European session. And today is no exception. Indeed, ether, which has spent the majority of the day in the red, is rising towards $1300 at the opening of the US session.
On top of that, this rise comes as the price of this crypto stagnates around the $1,280 support. Thus, this could be the start of a bull run for Ethereum. However, several levels of resistance seem to stand against a bull run. Some of these important resistance areas include the $1480, $1650 and $2000 level.
The breakout of these resistances seems to be the surest signal to predict a bull run on the term. Buying ether now seems like a pretty risky investment. Thus, the best thing to do would be to take short intra-day positions while Ethereum is in the red.
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