Ethereum Price is facing Critical Resistance at $1840; Eyes on Fed Interest Rate Decision
Ether remained steady while awaiting Fed Rate Increase Announcement
Today is an active day for ETH, with a focus on the Fed interest rate decision. After addressing the banking crisis, US authorities and policymakers will turn to cryptos.
- It was a bearish Wednesday, with ETH dropping by 0.43% to $1,798.58.
- The reduction of the banking crisis and positive sentiment towards the Fed fueled the price.
- Conor Grogan, director of Coinbase, found thousands of bugs and vulnerabilities on the Ethereum blockchain.
- $1840 is holding Ethereum Price from further upside.
On Wednesday, Ethereum (ETH) dropped by 0.43%. ETH/USD dropped from 1,833 on Tuesday to 1,798 today. Early on Wednesday, the pair maintained its bullish momentum. Later in the day, it held steady.
Easing worries about the Banking Crisis boosted expectations for a less aggressive Fed
The US Treasury Secretary Janet Yellen’s efforts to ease concern around the banking crisis appear to have been successful as bank shares increased overnight. On Tuesday, at the American Bankers Association conference in Washington, she said that the Federal Reserve’s recently launched Bank Term Funding facility and discount window loans are helping to boost the banking sector’s liquidity. As a result, when liquidity concerns subsided, the banking sector rebounded.
Furthermore, with worries of a banking collapse fading, investors anticipate the Fed raising interest rates by only 25 basis points today. The Dollar Index (DXY) dropped 0.21% to 103.04 as investors await the Fed rate decision.
Investors’ sentiment towards the Fed and the dropping dollar delivered price support to the ETH/USD in the early trading hours. Moreover, expectations of a halt after March supported the broader crypto market and ETH. However, ETH dropped later as investors awaited FOMC for further direction.
Looking forward, the Fed’s stance on interest rates, the FOMC’s forecasts, and Fed Chair Powell’s speech will all be the deciding factors.
Lost Ethereum Coins are capping further gains
On Tuesday, Conor Grogan, the director of project strategy and business operations at Coinbase, took to Twitter to discuss the extensive list of ETH coins that have been lost forever. Conor disclosed that up to 636,000 ETH worth $1.15B+ or 0.5% of the total supply in circulation will never be retrieved.
He classified these losses as Ethereum typos, user mistakes, and buggy contracts. Conor shared his opinions on a Twitter thread, saying the quantity is excessive because they can’t be sold, though he did acknowledge that cryptocurrency trading may sometimes be challenging.
Interestingly, unknown factors have strangely led to sending 11.5k Ethers, or $20 million, to a burn address. Around 11,000 Ethers were lost as a result of an incorrect NFT minting. These negative developments kept the ETH/USD under pressure and capped further gains on Wednesday.
On the other side, the Ethereum developers anticipate that the user interface will be simplified with the forthcoming Shanghai update, which is currently planned on April 12. It is because investors will be able to withdraw staked ethers while boosting ETH/USD.
Ethereum Technical Analysis
Ethereum price is falling after facing resistance at the $1840 level. The cryptocurrency is trying hard to regain its bullish momentum that was started a week ago. It has been moving in a range of 1783-1830 since late yesterday.
There is a triple top forming at the first resistance level of $1840. It indicates that the second-largest cryptocurrency lacks bullish pressure to move past this level. However, the price is still making a higher low pattern and moving in an ascending channel, suggesting the overall trend is still bullish.
Furthermore, the lookout for the EMAs in the 4-hourly chart gives bullish signals. The prices are moving above all the EMAs. The 50-period Exponential Moving Average (EMA) is pulling apart from the 100-EMA. Furthermore, the 100-Period EMA is also widening from the 200-EMA, indicating bullish pressure ahead. Meanwhile, the MACD, RSI, and Stochastic Oscillator, all the technical indicators, are giving signals of somewhat bullish pressure.
Any break above the critical 1840 resistance will push the prices further towards the next resistance at 1876. And any break above this level would push prices towards the next target above the 1900 level. On the support side, the cryptocurrency ETH/USD is facing initial support at 1789, holding the pair from declining. Any break below this level will further drag the prices towards the next support level of 1744. If Erthereum prices fall below this level, they would see next support at the 1709 level.