Tuesday, December 5, 2023

Ethereum Price Holds at $1,500, Why There’s Hope For The Bulls

Must read

Stocks Drift as Doubts Settle on Goldilocks Rally: Markets Wrap

(Bloomberg) -- Stocks drifted as traders pushed back on optimistic scenarios that central bankers will cut interest rates in time to avert recession.Most Read...

China’s Colossal Hidden-Debt Problem Is Coming to a Head

Mounting financial stress at local governments leads Moody’s to lower its outlook on China’s credit ratingUpdated Dec. 5, 2023 3:59 am ETChina is trying...

AT&T Taps Ericsson for $14 Billion Network Revamp, Ousting Nokia

(Bloomberg) -- Shares of Nokia Oyj. dropped as much as 10% on Tuesday after AT&T Inc. chose rival Ericsson AB to modernize its US...

After yesterday’s Federal Open Market Committee (FOMC), the Ethereum price and the crypto market have held their ground. Those market participants expecting a return to the previous range might be disappointed as macro-economic forces 

At the time of writing, the Ethereum price trades at $1,540 with a 2% profit in 24 hours and a 2% loss in the previous seven days. Other cryptocurrencies in the top crypto top 10 by market capitalization follow this trend, but the majority record positive momentum. 

Ethereum Price ETH ETHUSDT
ETH’s price trends to the upside on the daily chart. Source: ETHUSDT Tradingview

Ethereum Price Sustains Positive Outlook

The current Ethereum price action has come as a shock for many market participants. As mentioned, market participants expected downside pressure after the U.S. Federal Reserve (Fed) reiterated its hawkish stance. 

However, the financial institution raised rates by 75 basis points (bps) within market expectations. The Fed and its Chairman Jerome Powell offered no surprise and will likely stay on their current course for 2022. 

Therefore, the crypto market can sustain its levels even as equities see losses. All major narratives in the nascent asset class have been suspended, at least until tomorrow, when the U.S. government will release new economic data. 

Talking about the recent price action in the crypto market, analyst Justin Bennet said

It would be ironic if markets rallied after Powell’s attempt to squash any hope at Wednesday’s FOMC. I’m not ruling it out. And to be honest I’m eyeing a few areas during this pullback in case we get it (…) Waiting for markets to digest FOMC and avoiding Friday’s NFP volatility for now.

A separate report from trading firm QCP Capital indicates that the Ethereum price remains bullish in the long run. The first believes that “The Merge” impact on the ecosystem will become palpable in the coming months. 

In that sense, “The Surge,” the next major milestone for Ethereum, will begin exercising more influence over the crypto market. This event will complete Ethereum’s transition to a more scalable ecosystem with a project transaction per second (TPS) almost twice as high as Visa and Mastercard at 100,000. 

In addition, the trading firm noted a massive decrease in the ETH supply coming into the market. The amount of ETH supply issued stands at 7,000 versus 400,000 that would have been issued with the old consensus. All of these factors are poised to provide value for the ETH. Especially if macroeconomic forces mitigate their influence over risk assets. 

More articles

Latest article

Stocks Drift as Doubts Settle on Goldilocks Rally: Markets Wrap

(Bloomberg) -- Stocks drifted as traders pushed back on optimistic scenarios that central bankers will cut interest rates in time to avert recession.Most Read...

China’s Colossal Hidden-Debt Problem Is Coming to a Head

Mounting financial stress at local governments leads Moody’s to lower its outlook on China’s credit ratingUpdated Dec. 5, 2023 3:59 am ETChina is trying...

AT&T Taps Ericsson for $14 Billion Network Revamp, Ousting Nokia

(Bloomberg) -- Shares of Nokia Oyj. dropped as much as 10% on Tuesday after AT&T Inc. chose rival Ericsson AB to modernize its US...

The Rise of Temu’s Chinese Parent Will Reshape E-Commerce

PDD, the owner of fast-growing Temu, is muscling into the U.S. in a way Alibaba never didUpdated Dec. 5, 2023 12:06 am ETMove over,...