After experiencing considerable momentum, Ethereum’s sentiment has dropped as the Federal Open Market Committee (FOMC) meeting edges closer, according to Santiment.
The market insights provider explained:
“Ethereum had an up and down Sunday, jumping above $1,640 before dipping back down to $1,540. The trading crowd is still skeptical of the hype and anticipates that prices will fall at the FOMC meeting. ETH should continue to stay volatile.”
Source: Santiment
Part of the Federal Reserve (Fed), where the FOMC sets the direction of monetary policy. In recent times, it has made use of interest rate rises. The interest rate increased by 75 basis points (bps), the largest increase in 28 years.
All indicators point to a similar increase in the interest rate with the FOMC meeting scheduled for July 27. Mike McGlone is a senior Bloomberg Intelligence commodity strategist.
“The Fed is using a sledgehammer on commodities and risk assets. Although the rate-hike in June was at 75 bps, it is down 20% for crude oil, copper, or corn. The stock market may be more vulnerable than crude.”
Crypto analyst Ali Martinez said that Ethereum should have $1,550 in order to avoid a pullback, as it is a substantial support level. He pointed out:
“Transaction history shows that Ethereum formed a significant demand wall at $1,550, where more than 586,000 addresses had previously purchased nearly 5.1 million ETH. Failing to hold above this vital support level could trigger a correction to $1,300.”
According to CoinMarketCap, the second-largest cryptocurrency fell by 4.95% over the past 24 hours. It reached $1,522 in intraday trading. CoinMarketCap.
Source: Shutterstock
