Ethereum saw an increase in its price on Tuesday along with the rest of the crypto market following the positive CPI data release. The jump in price saw Ethereum finally beat the $1,300 price point after hovering around $1,200 coming out of the weekend. However, the digital asset had met significant resistance at the $1,350 price level, which could end up being a bearish development for the cryptocurrency.
Currently, Ethereum traders are still very on edge regarding the cryptocurrency. Even the Tuesday recovery has not done much to actually instill faith in buyers, especially given the Fed’s announcement that is expected to happen on Wednesday. Expectations remain narrow because even though inflation saw a slowdown, it still remains high at 7.1%.
Given this, traders are still being conservative in their positions and are not placing too much emphasis on ETH at this time. This is expected to continue through much of the midweek trading day until Powell’s announcement is live.
There are also expectations to follow depending on what stance the Fed takes this time around. Over the last couple of months, the Fed had been hawkish due to the rising inflation in the country. But given that inflation had actually come out lower this time around, it could see the Fed soften its stance. If not, then a continuous hawkish stance from the Fed would no doubt see a retracement in the crypto market, which could see Ethereum lose all of its gains from Tuesday.
ETH’s price trends to the downside on the daily chart. Source:
Binance FUD Affects ETH
Over the last couple of days, the Binance crypto exchange had been the target to crypto users’ ire as questions about its reserves were raised. As a result, there was massive withdrawals from the exchange, with Binance Ethereum withdrawals accounting for the majority of ETH withdrawals from centralized exchanges over the past week.
As it is now, there are still rumors that the exchange may be insolvent and some are beginning to prepare for another FTX-level event if Binance were to fall. Naturally, this has led to caution among investors who expect a downtrend if such a thing were to happen.
Alternatively, the could also point towards accumulation among ETH holders. The reduced volume on centralized exchanges could mean a bottom for the digital asset, and if the Fed announcement turns out to be positive, ETH is likely to see $1,400 before the close of day.
Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.
Read more
Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.
Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.
Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.
Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.
When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.
As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.
Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
