As an optimistic candle nowadays has been established on the back of a significant support level, the Ethereum (ETH) price is determined to reserve the great returns it has created for the entire year of 2022.
Many bears have been hurt by this move, as they were most likely caught in the bear trap by the false break below the supportive short-term trend line.
The low price comes after Federal Reserve Chairman Jerome Powell announced last week that the Fed will most likely begin raising rates in March to combat inflationary pressures.
The stock market’s terrible week in nearly two years, and the discharge of the Federal Reserve’s long-awaited report on a feasible government-issued virtual currency, all contributed to Ethereum’s huge drop.
This is how Ethereum’s current price relates to its recent daily high:
After the META earnings slippage, Ethereum’s price was dangling below a short-term trend line and appeared to be quite bulky. But, once again, markets can change their views overnight, as evidenced by Amazon’s earnings that bolstered the current booster rally.
This has spilled over into cryptos, with a firm break above $2,695 squishing out bears that went brief on the trend line’s false pause, and it’s only a matter of time before they close out and start taking their losses.
As a result, the price of Ethereum is poised for a 2nd rally today, as bears will be forced to regress to buy-side volume to close and cut their losses.
This will give ETH prices an uplift, and be able to hit the price target of $3,018. With that step, the red downward trend line could be cracked, officially ending bears’ chances as well as paving the way for a potential longer-term upswing.
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