On February 1, Ethereum saw a slight increase in value as investors and traders awaited the outcome of the Federal Open Market Committee (FOMC) meeting. The consensus among market participants is that the U.S. The Federal Reserve will raise interest rates by 0.25%, bringing the current rate to 4.75%.
On the same day, Bitcoin experienced a positive trend as its price rose above $23,000, reflecting growth in investor confidence. This serves as a reminder of the constantly evolving and dynamic nature of the cryptocurrency market, where changes in investor sentiment can quickly impact asset prices.
Bitcoin (BTC) experienced a resurgence today, with prices climbing back above $23,000 as investors focused on the outcome of the Federal Open Market Committee (FOMC) meeting that was scheduled to take place in the afternoon.
The price of BTC had dropped to a low of $22,874.43 on Tuesday but managed to bounce back, reaching an intraday high of $23,225.02. The world’s largest cryptocurrency was able to surpass an important resistance level at $23,200 for a brief period, before settling back down.
It is worth noting that the FOMC meeting can have a significant impact on the financial markets and has the potential to influence the direction of Bitcoin prices. Investors often pay close attention to the Fed’s monetary policy announcements and the statement it releases after each meeting, which provides insight into the central bank’s views on the economy and the future path of interest rates.
Despite the volatility that the Fed meeting has caused, prices have continued to drop below the original $23,045.02 mark and are now settling at $22,914.37. At the same time, the 14-day relative strength index (RSI) has been fluctuating between 68.00 and 69.83, as investors remain uncertain about the outcome of the meeting.
In the hours leading up to the conclusion of the meeting, the RSI could remain around the current 69.83 mark, as investors await the Fed’s decision. After the meeting has concluded, the RSI is likely to rise or fall drastically, depending on the outcome of the meeting.
Ethereum Increased in value
Ethereum price found strong support near the $1,550 zone, and from there, a base was formed which triggered a fresh increase in ETH price above the $1,600 resistance zone. This movement was similar to the one in Bitcoin, as both digital currencies surged significantly.
The surge was sustained above the $1,620 and $1,650 resistance levels, as well as a major bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD. This led to the formation of a high near $1,697 and the price is now consolidating gains
At the moment, Ethereum is trading above the 23.6% Fib retracement level of the recent rally from the $1,558 swing low to the $1,697 high. Additionally, Ether’s price is now trading above $1,650 and the 100 hourly simples moving average. This is an indication of further bullishness in the near term, as the bulls seem to be in control of the market
Ethereum prices have seen a steady incline in the past few weeks, and investors are expecting the trend to continue. The immediate resistance level for the cryptocurrency is near $1,700, with the next major resistance located at $1,720.
A breakout above the $1,720 resistance level could potentially spark another bullish run, with prices possibly making their way to the $1,800 level. If the momentum continues, the price could reach the $1,880 resistance zone.
In recent months, Bitcoin and Ethereum have been on a wild ride, with prices reaching all-time highs before experiencing a sharp correction. Despite the volatility, many investors remain bullish on cryptocurrency and believe that it has a bright future ahead, driven by increasing adoption and mainstream acceptance.
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.