Bitcoin, Ethereum Technical Analysis: BTC, ETH Remain Near Multi-Month Lows Following Fed Rate Hike
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.
Bitcoin (BTC) moved closer to $18,000 on Thursday, as markets slipped following the latest U.S. Federal Reserve policy meeting
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.
Like bitcoin, ethereum (ETH) saw its price decline following the Fed’s decision to hike rates, with the token falling below $1,300.
Following a high of $1,384.48 during yesterday’s session, ETH/USD dropped to a bottom of $1,229.43 earlier today.
In what is another similarity with BTC, the decline in price saw ethereum collide with a floor of $1,230.
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.
Register your email here to get weekly price analysis updates sent to your inbox:
Following yesterday’s announcement, can we expect crypto prices to rally in the coming days? Leave your thoughts in the comments below.