Ethereum dropped below $1,300 on Thursday, as markets continued to react to the U.S. Fed’s latest decision to raise interest rates. Following speculation of a 100-basis-point hike, the Federal Reserve hiked rates by 0.75%, as it continues to struggle against rising consumer prices. Bitcoin also declined, moving close to the $18,000 level.
The Fed opted to increase interest rates by 75 basis points on Wednesday, with Chair Jerome Powell hinting at further moves, stating, “In my view, there’s a way to go.”
As a result of this, BTC/USD fell to an intraday low of $18,290.32, which is its lowest level in three months.
Looking at the chart, the move saw bitcoin fall marginally below a support point of $18,300, with bulls reentering shortly after, sending prices higher.
As of writing, BTC is trading at $19,217.16, which is nearly $1,000 higher than the aforementioned low.
Prices may see some volatility however, as the 14-day relative strength index (RSI) has collided with a ceiling at 42.00, and if held, we could see bitcoin once again below $19,000.
Following a high of $1,384.48 during yesterday’s session, ETH/USD dropped to a bottom of $1,229.43 earlier today.
Bulls have since moved to lift the token higher, with the world’s second largest cryptocurrency trading at $1,307.80 as of writing.
The current price is close to a key resistance point of $1,315, and this comes as the RSI also nears a ceiling of its own.
Should ethereum bulls intend to move prices beyond this resistance above, the index, which is currently tracking at 37.67, will need to also move past a reading of 38.00.
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Following yesterday’s announcement, can we expect crypto prices to rally in the coming days? Leave your thoughts in the comments below.
Source: Bitcoin.com[mailpoet_form id="3"]