Ethereum Dragged To $3500 Mark Ahead Of FOMC: What’s Next For ETH?

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  • The Ethereum price experienced selling pressure and slipped to the 50-day EMA mark.
  • Ahead of the FOMC meeting today, a panic selloff happened overnight.

The second largest cryptocurrency, Ethereum (ETH), failed to hold gains and retested its 50-day EMA mark support in yesterday’s session. 

After 14 May 2024, Ethereum price witnessed a one-way rally fueled by the Ether Spot ETF news and approached the $3980 mark. However, the ETH price failed to surpass the round mark of $4000 and faced rejection from there.

This week, the Ethereum price was corrected by 8%, and the $3500 mark was retested. It signified the investors’ fear of carrying their long positions ahead of the FOMC meeting on 12 June.

The primary concern is that the Ethereum price has sharply breached its consolidation support zone and slipped below $3650. 

At press time, the Ethereum price traded at $3523 with an intraday surge of 0.18%, reflecting neutrality on the charts. It has a monthly return ratio of 20.20% and 103.20% yearly, reflecting a short-term bullish trend.

Could the ETH Bulls Trigger a Rebound in the Next Few hours?

Ahead of the FOMC meeting, the Ethereum price was noted to have a notable selloff, and a recovery might be seen in the next few hours.

The market analysts forecast no rate cuts or hikes in the FOMC meeting, which will decide the trend.

The price action indicates that the Ethereum price has gone exactly the path drawn on the charts, might continue to display higher high swings, and will meet the $4000 mark soon.

Source: Santiment

Its trading volume remained flat, noting a drop of over 3.20% to $13.34 Billion, while the RSI curve slipped to the oversold region, forming a negative crossover on the charts.

Likewise, the ETH price has retested its 50% Fib level and might get support here and revert toward the top soon.

Social Dominance and Development Activity Outlook

Despite the market volatility, users on social media platforms have discussed Ethereum and its community developments, which has resulted in a surge of over 7.26% to 8% mark.

Source: Santiment

Notably, the development activity data witnessed a clear spike and soared over 32% this week, noted at the 56.62 mark, directing a positive outlook.

A bullish rally can be anticipated once the Ethereum price exceeds the $4k mark. However, corrections are possible below the $3300 mark.

What Do Analysts Say About Ethereum’s Upcoming Moves?

Swing trader @Honey, in his tweet, revealed that she observed a long position in ETH.

Source: X

Likewise, @Wolf says that Ethereum (ETH) is poised to make a new ATH mark soon.

Source: X

Analyst @Ali Martinez says that Whales have bought over 240,000 ETH during the recent price dip, totaling around $840 million!

Source: X

The DEX Trading Volume Witnessed a Surge

Ethereum
Source: Artemis

In the past three trading sessions, the DEX trading volume witnessed a remarkable surge of over 165% to $3.30 Billion, revealing the surge in trading activity.

Ethereum
Source: DefiLlama

Notably, Ethereum’s TVL (Total value locked) witnessed a consistent surge and rose over 8.76% in the past 24 hours.

The immediate support levels for the Ethereum coin are $3350 and $3200, whereas the key upside hurdle is around $3700, followed by $3970

Conclusion

The Ethereum price has retested the 50-day EMA mark and looks in a dilemma now. Investors are waiting for the FOMC meeting outcome, which will decide the further movement in the crypto market.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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