Is Ethereum Price Poised To Take On $4,000?

Following the FOMC statement press release on June 12, Ethereum price briefly jumped to $3,655 before retracing downward. Meanwhile, Bitcoin price also saw a spike in volatility, rising in price to hit a high of $70,000 before also retracing.

The price of Ethereum traded at around $3,498, during European business hours, a 0.5% decrease in 24 hours, and a 9.5% decrease in 7 days. Bitcoin pirce, on the other hand, is hovering around $67,349, according to CoinGecko data.

Ethereum Price Analysis: Dovish Comments From FOMC Officials Prompt Bulls to Gear for Rally

ETH and Bitcoin prices began to rise a few hours after the FOMC meeting as investors anticipated good news from the government agency. ETH price increased by 6% in less than 20 hours and hit $3,655. Meanwhile, Bitcoin price also surged 6% to hit $70,007.

Following the FOMC press release statement, ETH and BTC prices retraced as investors sold the news. Currently, Ethereum is trending below its 50-day and 200-day simple moving averages (SMA), with strong support around $3,420 and $3,260. The $3,655 level posed significant resistance, resulting in a rejection and leaving a substantial wick. Bulls are now eyeing $3,200 as a potential bounce zone to gain the momentum needed to break through the $3,655 barrier.

Bitcoin, on the other hand, briefly enjoyed a small victory, touching $70,000 for the first time since Monday, June 10. Strong support exists around the $66,000 area and it may not fall below this price any time soon. BTC price is still trending below the 50-day and 20-day SMA, albeit it briefly spiked above these indicators yesterday. Bitcoin bulls may look to use $66,000–$6700 support as a bounce area to reclaim $70,000 and $72,000 price targets in the coming days.

Ethereum Price: FOMC Press Statement is Bullish for Crypto

The FOMC announcement yesterday elicited the expected reaction from the markets: volatility. In the press release, the Fed announced that rates would remain steady, marking the seventh consecutive meeting without rate hikes or cuts. Following a unanimous vote, there will be no rate cuts until there is confidence that inflation will remain at 2%. The rates will be maintained at 5.25% to 5.5%.

Even though the Fed reported solid economic growth, strong job gains, and low unemployment, their economic outlook remained uncertain. The expected number of rate cuts for 2024 dropped from three to one, with most cuts pushed to 2025. These facts and figures suggest that the economy is improving, but at a very slow pace. A healthy economy is beneficial for the crypto markets.

Bottom Line

Ethereum price may reclaim $4,000 soon as reports of a bettering economy fuel optimism among investors. Bitcoin bulls did a great job holding above a major support area. After buy-the-rumors investors have finished taking profit, Bitcoin and Ethereum prices may rally.

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Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.