The dire predictions of an extended bearish market could have been premature, as prices are now in recovery mode following a U.S. Federal Reserve signal that interest rates would remain at 0% for the moment.
The Fed’s announcement from raised prices in the cryptocurrency market. Bitcoin (BTC), up 4.11%, was pushing for $39,000 after the Fed announcement. This created a wave that lifted a majority tokens on the market. However, the BTC price is currently back at $37,000.
Cointelegraph Markets Pro and TradingView data show that Ethereum (ETH), the top smart contract platform, also responded positively to bullish sentiment. Its price climbed 8.11% over the 24-hour chart to reach a daily high of $2,723.
ETH/USDT 1-day chart. Source: TradingView
Here are some thoughts from market analysts about Ethereum’s price action and where it might be heading in the near future.
Ether saw a nice 12% jump from recent lows
Crypto trader and pseudonymous Twitter User ‘CryptoAmsterdam” provided a short-term analysis on Ether’s price movement. He posted the following chart, which shows one possible direction the price of Ether might take in the near future.
ETH/USDT 1-hour chart. Source: Twitter
CryptoAmsterdam warned that they would not chase the green here after noticing the “nice 12% jump” in Ether’s price “since the flip”.
“Will be looking for a short-term flip in bias if we get under the lower timeframe range high and break that trendline.”
Bottoming pattern on the Ether Chart
Options trader John Wick, a pseudonymous Twitter user, provided further insight into Ether’s state. He posted the following chart that highlighted the formation of a bottoming pattern in the Ether chart.
ETH/USD 4-hour chart. Source: Twitter
“Ethereum is trying to break through the resistance zone with the same bottoming pattern. To break out, we need to see more upside from BTC.
Related: Altcoins report 40% gains following Bitcoin and crypto market relief rallies
Support at $2,850 is needed for Ether bulls to reclaim their support
Crypto trader and pseudonymous Twitter account ‘TheCryptoCactus shared a final analysis of key levels to watch out for moving forward. He posted the following chart, which shows a key support/resistance zone as well as an area with heavy accumulation.
ETH/USD 2-day chart. Source: Twitter
According to TheCryptoCactus those who “longed the bottom” can get an “easy hedge at these levels. However, the trader warned that it is necessary next to “to get a valid support/resistance turn of $2,850.”
According to TheCryptoCactus,
“Personally, I would rather wait until we flip $3,000 in support again than just ape large positions.”
The total cryptocurrency market is now worth $1.734 trillion, and Bitcoin’s dominance rate of 41.5%.
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