{"id":523944,"date":"2023-03-21T13:00:23","date_gmt":"2023-03-21T13:00:23","guid":{"rendered":"https:\/\/wncen.com\/?p=523944"},"modified":"2024-06-11T06:52:52","modified_gmt":"2024-06-11T06:52:52","slug":"can-ethereum-fall-below-1500-here-are-factors-that-could-drive-it","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum\/can-ethereum-fall-below-1500-here-are-factors-that-could-drive-it\/","title":{"rendered":"Can Ethereum Fall Below $1,500? Here Are Factors That Could Drive It"},"content":{"rendered":"

With the crypto market rally slowing down already, digital assets in the space such as Ethereum (ETH) are already recording a decline in their prices. The second-largest cryptocurrency by market cap has closely followed the downtrend started by Bitcoin, falling once more to the $1,700 level. But will there be a recovery or is ETH destined to revisit $1,500 once more?<\/p>\n

Crypto Market Slows Down On FOMC Anticipation<\/h2>\n

The slow down in the crypto market that has caused prices to retrace can be easily tied to the anticipation around the next FOMC meeting happening March 21-22<\/a>. Even though expectations are that the Fed would only raise rates by another 25 basis points, it still has a stronghold on the market as it doesn\u2019t always go along with expectations.<\/p>\n

Related Reading: Stacks (STX) Reclaims $1 As First DeGods Ordinal NFT Mints For 3.2 BTC<\/a><\/div>\n

Given this, investors have seemingly slowed down in the market, causing digital assets to fall back toward support levels. This is not unusual and it is not peculiar to the crypto market. It is because based on how much the Fed hikes rates, it can either be very good or very bad for the crypto market.<\/p>\n

Each announcement has an effect on equities markets and given Bitcoin\u2019s high correlation to the stock market so far, the reaction trickles down into the crypto market. Expectations of a positive announcement is also obvious given that the assets are holding up quite nicely with BTC still maintaining above $27,000 and ETH holding $1,700.<\/p>\n

What Could Drive Ethereum Price To $1,500<\/h2>\n

Despite the expectations of a 25 basis point hike, which would show that the Fed was slowing down its tightening, there is always the possibility that the hike is higher than expected. The last FOMC saw a 25 basis point hike, so another 25 bps hike or lower would be ideal to enable markets and the assets in them to hold their value.<\/p>\n

\"Ethereum<\/p>\n

ETH gearing up to test $1,800 resistance | Source: ETHUSD on TradingView.com<\/a><\/pre>\n

However, if the Fed were to resume its tightening and announce a 50 basis point hike, it would be devastating for the market, especially risk assets such as Bitcoin and Ethereum. Such an announcement would quickly cascade through the space and ETH falling to $1,500 becomes a very real possibility.<\/p>\n

Related Reading: Bullish Signal: XRP Whales Go On $155 Million Buying Spree<\/a><\/div>\n

Even if the FOMC announcement comes out worse than expected, ETH bulls will likely not go down without a fight. There is significant support at the $1,700 level and then again at $1,620. These will hold even better than $1,800.<\/p>\n

More importantly, ETH is still firmly above the 100-day and 200-day moving averages. These two are important indicators that suggest that the possibility of further uptrend is higher than the possibility of a decline below $1,500.<\/p>\n

Follow Best Owie on Twitter<\/a> for market insights, updates, and the occasional funny tweet\u2026 Featured image from MARCA, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

With the crypto market rally slowing down already, digital assets in the space such as Ethereum (ETH) are already recording a decline in their prices. The second-largest cryptocurrency by market cap has closely followed the downtrend started by Bitcoin, falling once more to the $1,700 level. But will there be a recovery or is ETH destined to revisit $1,500 once more? Crypto Market Slows Down On FOMC Anticipation The slow down in the crypto market that has caused prices to retrace can be easily tied to the anticipation around the next FOMC meeting happening March 21-22. Even though expectations are that the Fed would only raise rates by another 25 basis points, it still has a stronghold on the market as it doesn\u2019t always go along with expectations. Related Reading: Stacks (STX) Reclaims $1 As First DeGods Ordinal NFT Mints For 3.2 BTC Given this, investors have seemingly slowed down in the market, causing digital assets to fall back toward support levels. This is not unusual and it is not peculiar to the crypto market. It is because based on how much the Fed hikes rates, it can either be very good or very bad for the crypto market. Each announcement has an effect on equities markets and given Bitcoin\u2019s high correlation to the stock market so far, the reaction trickles down into the crypto market. Expectations of a positive announcement is also obvious given that the assets are holding up quite nicely with BTC still maintaining above $27,000 and ETH holding $1,700. What Could Drive Ethereum Price To $1,500 Despite the expectations of a 25 basis point hike, which would show that the Fed was slowing down its tightening, there is always the possibility that the hike is higher than expected. The last FOMC saw a 25 basis point hike, so another 25 bps hike or lower would be ideal to enable markets and the assets in them to hold their value. ETH gearing up to test $1,800 resistance | Source: ETHUSD on TradingView.com However, if the Fed were to resume its tightening and announce a 50 basis point hike, it would be devastating for the market, especially risk assets such as Bitcoin and Ethereum. Such an announcement would quickly cascade through the space and ETH falling to $1,500 becomes a very real possibility. Related Reading: Bullish Signal: XRP Whales Go On $155 Million Buying Spree Even if the FOMC announcement comes out worse than expected, ETH bulls will likely not go down without a fight. There is significant support at the $1,700 level and then again at $1,620. These will hold even better than $1,800. More importantly, ETH is still firmly above the 100-day and 200-day moving averages. These two are important indicators that suggest that the possibility of further uptrend is higher than the possibility of a decline below $1,500. Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet\u2026 Featured image from MARCA, chart from TradingView.com<\/p>\n","protected":false},"author":541,"featured_media":523945,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13625],"tags":[8323,87551,16163,1946,8686,78803],"class_list":["post-523944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-eth","tag-eth-performance","tag-eth-price","tag-ethereum","tag-ethusd","tag-ethusdt"],"acf":[],"yoast_head":"\nCan Ethereum Fall Below $1,500? Here Are Factors That Could Drive It<\/title>\n<meta name=\"description\" content=\"With the crypto market rally slowing down already, digital assets in the space such as Ethereum (ETH) are already recording a decline in their prices. 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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\u2019s 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\u2019s 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\u2019s most quiet and well-behaved Husky. Best\u2019s 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\u2019s prolific career in the media industry is a testament of how hard work and dedication pays.","sameAs":["https:\/\/www.linkedin.com\/in\/best-owie-41a150178\/","https:\/\/x.com\/https:\/\/twitter.com\/BestOwie"],"url":"https:\/\/wncen.com\/author\/owiebest\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Can Ethereum Fall Below $1,500? 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