Ethereum price has paused after Sunday’s rallying. The surge was the market’s reaction to Elon Musk’s tweet on Tesla’s probable reinstatement of Bitcoin as a means of payment. Ethereum is the second-largest cryptocurrency after Bitcoin, both by daily trading volumes and market capitalization. As such, a rise in the prices of the largest digital currency often spills over to its main competitor.
On Sunday, Musk tweeted in response to Cointelegraph’s report, which included a statement by Sygnia’s executive chair, Magda Wierzycka. According to Wierzycka, the US Securities and Exchange Commission ought to have investigated Musk’s recent tweets on Bitcoin. In May, Ethereum price dropped after Musk indicated that Tesla would suspend the use of Bitcoin as a mode of payment.
Investors are now keen on the Fed interest rate decision scheduled for Wednesday. The focus will be on whether the central bank maintains its position that inflationary pressures are transitory. A dovish tone will be positive for Ethereum price.
ETH/USD technical outlook
Ethereum price has eased after skyrocketing in the previous session. On Sunday, ETH/USD surged from an intraday low of 2,310.19 to 2,551.89. The price movement represented a rise of over 10%. At the time of writing, the crypto was down by 0.86% at 2,488.62. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages.
I expect Ethereum price to continue finding resistance at Sunday’s high of 2,551.89. The entry of more buyers into the market may push the prices to the next resistance level at 2,676.01. On the flip side, it may decline to find support along the 25-day EMA at 2,427.77 or lower at Sunday’s low of 2,310.19.
Ethereum price chart
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