Ethereum showed significant growth as it approached the $1,700 level on Wednesday. The upward movement in Ethereum’s value can be attributed to the market’s reaction to the comments made by U.S. Federal Reserve Chair Jerome Powell. Powell’s statement, given after Tuesday’s session, indicated that the Federal Reserve may continue to raise interest rates if the data supports such action. The surge in price also boosted the value of Bitcoin, which saw a resurgence and climbed back into the $23,000 region.
This is a significant development for Bitcoin, as it has seen a decline in value in recent times. The market’s positive response to Powell’s comments highlights the growing importance of cryptocurrencies and the increasing attention that they are receiving from both investors and financial institutions.
On Wednesday, Bitcoin (BTC) experienced a surge in value following comments from Federal Reserve Chair Jerome Powell. In a statement made the previous day, Powell stated that the Federal Reserve would react to the data and adjust its monetary policy accordingly. If the data continues to show a strong labor market and higher inflation reports, the Federal Reserve may need to raise interest rates more than what is currently anticipated.
This news had a positive impact on the value of Bitcoin, with the BTC/USD rate reaching an intra-day high of $23,367.96 just 24 hours after hitting a low of $22,781.95. The cryptocurrency market is often sensitive to news and comments regarding monetary policy, and Powell’s statement seems to have had a significant impact on the value of Bitcoin.
An examination of the chart reveals that the recent move in bitcoin prices has resulted in the cryptocurrency reaching its highest level in four days. This upward trend occurred as the 14-day relative strength index (RSI) approached a crucial point. The RSI reached 65.00, which is considered a ceiling, however, the momentum was not sufficient enough to push it past this level.
As of the time of writing, the 14-day RSI is currently hovering at 62.92, with bitcoin experiencing some pullback from its earlier highs. The cryptocurrency is currently trading at $23,195.36, which is still a relatively strong position.
It is important to note that the RSI is a commonly used technical indicator for determining the momentum and strength of a financial asset. The ceiling at 65.00 is a significant point for traders, as it often signals a potential trend reversal. However, in this case, the momentum was not strong enough to break through this level, leading to the current pullback in bitcoin prices.
The Ethereum market recently experienced a price fluctuation as the cryptocurrency attempted to reach a new high above the $1,700 level, similar to the recent surge of Bitcoin at $23,500. Despite the initial attempt, ETH was unable to clear the $1,700 resistance zone and saw a drop below the key support levels at $1,660 and $1,650.
This resulted in a retest of the crucial support at $1,600, where a low was formed near $1,610. The price has since been consolidating its losses, currently trading below the $1,650 level and the 100-hour simple moving average.
Additionally, a bearish trend line is forming on the hourly chart of ETH/USD, with resistance near $1,640. The immediate resistance level is at $1,630, which is close to the 23.6% Fib retracement level of the downward movement from the recent high at $1,698 to the low at $1,610.
The next major resistance point for Ethereum is at $1,640, which coincides with both the trend line and the 50% Fib retracement level of the same downward movement from $1,698 to $1,610.
A break above the $1,650 resistance level could initiate a new upward trend. If this occurs, the price may surge toward the $1,700 resistance level. Further gains could propel the price of ether toward the $1,800 resistance zone.
The recent growth in the value of Ethereum and Bitcoin serves as a reminder of the potential of cryptocurrencies and the importance of staying informed about the latest developments in this rapidly evolving market before making any investment.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.