ETH Above $1,600 As Markets Begin Anticipating Fed Rate Decision – Market Updates Bitcoin News
Ethereum traded above $1,600 on Monday as markets prepared for the latest policy meeting of the US Federal Reserve. The Fed is expected to raise interest rates by 75 basis points this week as inflation remains at historic highs. Bitcoin also bounced back, hovering marginally below $21,000 in today’s session.
Bitcoin
Bitcoin (BTC) held close to $21,000 on Monday as markets recovered from yesterday’s selloff.
After Sunday’s low of $20,461.72, BTC/USD rallied to an intraday high of $20,791.67 earlier today.
The move sees the token edge closer to Saturday’s high of $21,080, which was the strongest point the token had hit since September 13.
Looking at the chart, Monday’s wave sent BTC close to its long-term price resistance at $20,800, which has not been breached since early September.
Price strength has also picked up again, with the 14-day relative strength index (RSI) now following at 61.47, which is close to its own ceiling of 63.00.
For BTC to move past $21,000, bullish pressure must first overcome this current threshold on the RSI.
Ethereum
Ethereum (ETH) was also in the green to start the week, as the token continued to trade above $1,600.
ETH/USD moved to a high of $1,623.68 earlier in today’s session, which comes less than 24 hours after trading at a low of $1,567.57.
Today’s price surge comes as the world’s second-largest cryptocurrency climbed above the $1,585 ceiling.
As can be seen from the chart, the upward crossover of the 10-day (red) and 25-day (blue) moving averages appears to be reaching a summit, which could be a sign of slowing momentum.
The RSI is also in overbought territory, meaning bears may already be positioning themselves for re-entry.
Wednesday’s meeting of the US Federal Open Market Committee (FOMC) is likely to be the trigger that either extends current momentum or changes direction.
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Do you expect ETH to reach $1700 before or after the Fed rate decision? Leave your thoughts in the comments below.
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