Cryptocurrencies

Ethereum Price Prediction: Fed Won’t Dampen Sentiment

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Written By: Faith Maina
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    Summary:
  • Ethereum price has pulled back after hitting a new record-high on Wednesday. The risk-on sentiment will likely boost it further.

Ethereum price is hovering around the support level at $4,600 after pulling back from the all-time high of $4,670.63 it hit on Wednesday. Based on the altcoin’s reaction to the Fed’s statement on Wednesday, the decision start tapering monthly asset purchases from November was already priced in.

Notably, the Fed maintained its narrative that high inflation will prove transitory. As such, it may not need to hastily hike rates. Subsequently, a risk-on sentiment will likely boost the cryptocurrency above the crucial support level of $4,400.

Ethereum price forecast

ETH has pulled back after hitting its all-time high in Wednesday’s session. However, the leading altcoin remains on an uptrend. In the past month, it surged by 48.95%. In the new month, it is already up by 7.45%.

At the time of writing, Ethereum price was down by 0.01% at 4,594.33. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages. Based on these technical indicators, it will likely record further gains in the short term.  

A pullback below its current support zone at around 4.600 will likely have Ethereum price finding support along the 25-day EMA at 4,513.07. To sustain the current momentum, the bulls need to defend the support at the crucial level of 4,400. On the upside, a move above the resistance level at the new record-high of 4,670.63 will place the next target at 4,800.  

Ethereum price

This post was last modified on Nov 03, 2021, 23:31 GMT 23:31

Written By: Faith Maina

Faith Maina is a financial analyst and economist. She holds a Bachelor’s Degree in Economics and is underway in her Master’s degree course. She has an expansive understanding of global markets and their drivers. Her specialities are currencies, crypto, commodities, and equities. She lives in Nairobi, Kenya with her husband and son.

Published by
Written By: Faith Maina