Key takeaways
- Ether is down 2% in the last 24 hours and is now trading below $4k.
- The bearish performance comes after Wednesday’s FOMC.
Ether drops below $4k on FOMC news
Ether, the second-largest cryptocurrency by market cap, has turned bearish after losing 2% of its value in the last 24 hours. The bearish performance saw Ether temporarily drop to the $3,800 mark, but it is now approaching $4k.
Yesterday’s sell pressure came after the FOMC meeting, with the Federal Reserve cutting interest rates by 25 basis points. However, Fed Chair Jerome Powell revealed that the apex bank will end quantitative tightening on December 1st.
This means that the Fed will reduce the financial assets it holds on its balance sheet by selling them into the financial markets, which decreases asset prices and raises interest rates. With this, it is highly unlikely that the Fed will cut interest rates in its next FOMC meeting in December.
Ethereum’s Fusaka upgrade, slated to bring increased scalability and security improvements, successfully debuted on Hoodi on Tuesday, the third and final testnet before mainnet launch. This launch didn’t push ETH’s price higher in the near term due to the broader crypto market volatility.
ETH could bounce back above $4,200 soon
The ETH/USD 4-hour chart remains bearish and efficient as Ether is down 2% in the last 24 hours. It is now trading at $3,939 per coin and could rally higher in the near term.
The technical indicators remain bearish but are showing signs of recovery following the recent dip. The RSI of 46 shows that the bearish trend is fading, with the bulls set to push its price higher over the next few hours and days. The MACD lines are also within the negative territory after flashing a sell signal on Wednesday.
If the recovery continues, ETH could reclaim the resistance level at $4,232 over the next few hours or days. An extended rally would allow ETH to hit the 4-hour ILQ at $4,409. However, failure to climb above $4,200 in the near term could see ETH retest the $3,800 low in the coming hours or days.
