Ethereum
Ethereum price continues to find support in Fed Chair’s dovish tone during his testimony before the US Congress on Tuesday. Despite the US central bank’s hawkish surprise in the past week, Jerome Powell downplayed the ongoing concerns over rising prices. The Fed Chair maintained his position that the rise in inflation is transitory.
Earlier in the week, New York’s Fed President John Williams held a similarly dovish tone, which helped calm investors’ nerves. The Fed official indicated that further progress is needed before the central bank can beginning tapering asset purchases.
At the same time, Ethereum price has had its gains curbed by China’s crackdown on crypto mining. According to Glassnode, a blockchain analytics company, most of the affected miners are in the process of migrating their hashing power to other regions while others are planning to shut down. The shift is likely to exert pressure on crypto prices in the near term.
After reaching an intraday high of 1,982.52 earlier on Thursday, Ethereum price has dropped to consolidate at around the psychological level of 1,900. On an hourly chart, it is trading slightly below the 25 and 50-day EMAs.
With the formation of an inverted head-and-shoulder pattern, which is usually a bullish pattern, I expect the crypto to record further gains in the ensuing sessions. In the near-term, it is likely to find resistance along the 50-day EMA at 1,957.30. However, as the bulls gather enough momentum, they are likely to push the price past the psychological level of 2,000 towards Monday’s support level at 2,133.82.
On the flip side, Ethereum price may remain range-bound between the support level of 1,858.96 and the resistance level of 1,957.30.
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