After the FOMC statement press release on June 12, Ethereum price briefly rose to $3,655 before declining. Meanwhile, Bitcoin price also saw an increase in volatility, rising to $70,000 before pulling back. At the time of writing, Bitcoin was trading at $67,643, while Ethereum was at $3,507.
What is happening with Ethereum?
Just hours after the FOMC meeting, investors saw a surge in Ethereum and Bitcoin prices as they anticipated positive news from the government body. In less than twenty hours, Ethereum’s price rose by 6% to reach $3,655, and Bitcoin’s price also rose by 6% to reach $70,007.
Following the FOMC press release, investors sold off the news, causing Bitcoin and Ethereum prices to drop. Ethereum is as of now exchanging underneath its 50-day and 200-day straightforward moving midpoints, with solid back at $3,420 and $3,260. Crucial resistance developed at the $3,655 level, which was rejected, creating a large wick. As a potential bullish zone, $3,200 is now eyed by the bulls so they can gain momentum and break the $3,655 barrier.
On the other side, Bitcoin saw a brief moment of triumph when it hit $70,000 for the first time since June 10. There is a strong support level around $66,000, and a drop below this level is unlikely to happen very soon. Despite yesterday’s brief rise above these signals, Bitcoin price is currently trading below both its 20-day and 50-day SMA averages. In the upcoming days, Bitcoin bulls may try to reclaim the $70,000 and $72,000 price targets using the $66,000 support level.
In the crypto market: what can we anticipate?
Even though the Fed reported high job growth, low unemployment, and strong economic growth, the economy is still in doubt. Three interest rate cuts were expected in 2024; however, most were postponed until 2025. These data points show that the economy is growing, but it is happening at a very slow pace. Cryptocurrency markets may benefit from a strong economy.
Investor confidence is rising as a result of reports of an improving economy. The Ethereum price could soon return to $4,000. Bulls in Bitcoin have done a great job of holding above a key support level. Bitcoin and Ethereum prices could rise after investors who bought the rumors book profits.
