The cryptocurrency market, led by the most important cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), surged on Tuesday to ranges not seen in over a month in anticipation of the Federal Reserve’s (Fed) imminent announcement of its first rate of interest minimize for the reason that COVID-19 pandemic.
However, regardless of these expectations or what the result of the Fed’s announcement may have available on the market, on Bitcoin Halving years, the fourth quarter (This autumn) is often considerably bullish for the 2 largest digital belongings and the broader market.
Exploring The Ethereum Price Performance Post-Bitcoin Halving
Interestingly, Ethereum’s efficiency following previous Bitcoin Halving occasions has displayed notable variations. Data reveals that within the yr following the 2016 Halving, Ethereum skilled a forty five% drawdown earlier than embarking on a notable rally that culminated in a 3,400% enhance.
Similarly, after the 2020 Halving, ETH surged by 150% earlier than rocketing to a 2,150% acquire. However, for the reason that newest Halving in April, ETH has mirrored Bitcoin’s volatility, encountering notable value fluctuations and establishing decrease assist ranges.
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The current month has not been variety to Ethereum, marked by two important crashes. On August 5, ETH retraced over 25%, plummeting to a six-month low of $2,110. The downward pattern continued into September, with elevated promoting strain resulting in a drop from $2,800 to roughly $2,150 in only one week.
Despite these challenges, analyst CryptoBullet stays optimistic about This autumn’s potential for a turnaround. Notably, the analyst identified a “triple bottom” formation on the ETH/USDT day by day chart see within the picture under, paying homage to value motion noticed in 2021.
This sample means that Ethereum could also be poised for a rebound just like that seen in 2021, when it surged from round $1,650 to its all-time high of $4,730. Yet, at present buying and selling at roughly $2,330, Ethereum sits over 52% under its earlier all-time excessive.
ETH Price Analysis
Predicting additional value volatility for ETH on Wednesday forward of the upcoming Fed charge minimize, there are key levels to watch. In the previous week, ETH has established the $2,260 mark as a big assist stage. This value level is essential, because it may act as a buffer towards an additional decline towards $2,200 or perhaps a retest of the subsequent main assist at $2,100.
On the upside, the 50-day exponential transferring common (EMA) is at present positioned at $2,350, serving as a formidable barrier for Ethereum. This resistance stage has been stopping the cryptocurrency from retesting the $2,400 mark within the close to time period.
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Should ETH handle to interrupt above these resistance ranges, bullish traders will set their sights on the subsequent main resistance at $2,520. Just above this stage lies one other essential hurdle at $2,620, the place the 200-day EMA is located. This stage has not been surpassed since July of this yr, when Ethereum’s value fell under it, initiating the present downtrend.
Featured picture from DALL-E, chart from TradingView.com
