The cryptocurrency market did not react significantly to the interest rate hike despite all the speculation. The Federal Reserve announced a 0.25% hike in interest rates. Contrary to popular belief, high-risk assets did not show any reaction.
This may indicate investor confidence in rising inflation. The US stock index and the cryptocurrency market, which have been highly correlated lately, are all green, and the DXY Index is retreating.
technical analysis
Daily chart:
Technical Analysis By grizzly
The bulls stepped up their game and ETH crossed the $2650 resistance level on the daily time frame. It is currently struggling with its dynamic resistance (marked in yellow). The RSI-14D is also below the downtrend line (shown by the red line). Crossing these dynamic resistances and staying above them can be a strong positive sign for an uptrend.
The most important level to watch is $3300, and breaking it could confirm the end of the downtrend.
4 hour chart:
On the 4-hour time frame, Ethereum reached a resistance at $2850, which acted as a short-term hurdle over the past month. It failed on the first attempt to break the triangle made in ROC-9 and is now testing it again. If the mentioned resistances are crossed, a move above $3000 becomes easy.
Conclusion
Despite the recent green days in the market, there is still no confirmation of the end of the bear market, and the uptrend could only be a bounce in the mid-bear cycle. It is always recommended to avoid sentiment in trades to minimize risk or dollar-cost-averaging during periods of volatility.
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Cryptocurrency charts by TradingView.