Yesterday the US Federal Reserve (Fed) signaled that interest rates will remain close to 0% for the time being. Following the Fed announcement, the crypto market started to rally, Bitcoin (BTC) surged 4.11% and made a strong push to $39,000. This has created bullish momentum for most of the major altcoins in the market, but at the time of writing, Bitcoin is back in the $35,000 region.
Data from TradingView shows that Ethereum (ETH) also responded positively to the bullish sentiment across the market, sending the price up 8.11% to an intraday high of $2,723. However, the bullish momentum did not last and ETH fell into the $2,300 area.
Here’s what some market analysts are saying about Ethereum’s price action and its near-term goals.
Ether is up 12% from the recent lows
Short term analysis of ETH price action provided by crypto trader called “CryptoAmsterdam” who outline which direction ETH could take in the near future.
ETH/USDT 1 hour frame chart | Source: Twitter
After Ether posted a 12% gain, CryptoAmsterdam issued a warning that it could not continue its uptrend.
“There is a possibility of a short-term trend reversal if we get back below the lower timeframe high and break this minor trendline.”
ETH hits a bottom on the 4-hour chart
Further insight into the state of ETH was provided by independent market analyst John Wick, who published the chart To mark the formation of a bottom pattern on the chart.
“Ethereum is showing the same bottoming pattern trying to break out of the resistance area. I need to see more of Bitcoin for the breakout.”
4-hour frame ETH/USDT price chart | Source: Twitter
Ether bulls must reclaim the $2,850 support
A final breakdown of the key levels to watch is shared by analyst TheCryptoCactus, with a chart outlining key support and resistance areas and consolidation.
ETH/USD price chart 2-day frame | Source: Twitter
According to TheCryptoCactus, the “long bottoms” are in a good position to have “easy protection” at these levels, but he also warned that ETH needs to “turn $2,850 resistance into support.”
“Personally, I would wait for ETH to flip $3,000 to support and then take a large position.”
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According to Cointelegraph