Ethereum (ETH) Price Poised For 20% Jump Ahead Of U.S. FOMC Minutes Release?
The price of Ethereum (ETH) is currently experiencing high levels of instability around $1,670, and the monthly pivot for February is also under a lot of pressure. However, a number of on-chain indicators suggest that ETH could possibly rally, thus exacerbating a bullish momentum on the heels of the FOMC minutes to be released tomorrow.
FOMC Data Acting As Catalyst
On Wednesday, February 22, at 19:00 GMT, the Federal Reserve of the United States will release the minutes of the Federal Open Market Committee’s (FOMC) policy meeting that took place between January 31 and February 1. After holding its first policy meeting of the year, the Federal Open Market Committee (FOMC) agreed, as was widely anticipated, to raise the federal funds rate by 25 basis points, bringing it to a range of 4.5 – 4.75%.
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After suffering losses the previous day, the cryptocurrency market on February 21, 2023 has had a day of mixed results. Both Bitcoin and Ethereum experienced just slight price increases. At the time of writing, the total market capitalization of all cryptocurrencies has dropped by 1.79% from the previous day, placing it at $1.11 trillion.
Despite this, there is a clear indication that the price of Ethereum (ETH) is beginning to consolidate around a substantially critical monthly resistance level. Although ETH has transformed this barrier into a support floor on the lower timeframes, investors need to wait for a decisive breakout from the pennant to confirm the commencement of the second leg of the pattern. Additionally, market experts believe tomorrow’s FOMC minutes to be rather positive, thus lending further credence to the potential rally for the altcoin king.
Ethereum (ETH) Price Action
The price of Ethereum increased by almost 20% between February 13 and February 23. The beginning of the consolidation took place when ETH became entangled with the monthly resistance level located at $1,677. During this period of sideways movement, the price of Ether has constructed a pennant pattern by producing two higher lows and two lower highs.
The market behavior for Ethereum between February 13 and February 20 reveals a bullish pennant formation when taken as a whole. This setup anticipates a 20% upswing, which can be derived by estimating the distance of the first run and adding it to the breakout moment on the pennant.
In the event that the pennant is broken around $1,720, the price goal for Ethereum would be $2,055 assuming a 20% move in the upward direction. As things currently stand, the price of Ethereum (ETH) is currently trading at $1,487 which represents a decrease of 3% over the past 24 hours, in contrast to a decline of 9% over the last seven days, according to CoinGape’s crypto market tracker.
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