Ethereum Price Prediction: ETH Resilient Above $2k After Fed Minutes, Is The Bull Run Intact?
After the unexpected exit of Changpeng Zhao, also known as CZ in the digital asset space, as CEO of the leading crypto exchange Binance, Ethereum price prediction shows resilience alongside other selected altcoins are rebounding, although gradually.
The second largest crypto, up 1.6% in the last 24 hours to $2,018 and 20% over the last four weeks, swept liquidity at $1,930 as investors reacted to the developments at Binance.
The former Binance CEO resigned following a $4.3 billion settlement agreement with the Department of Justice (DoJ) and on the condition that CZ pleads guilty to violating anti-money laundering regulations and does not hold an executive position at the company.
Although CZ will be allowed to retain his stake in Binance, his exit has touched many who feel that his impact contributed immensely to the growth the crypto market has achieved over the years.
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Can Ethereum Price Ignore Fed Minutes And Rally To $3,000?
Market participants are likely to rally behind Ethereum price, especially with the token trading above the $2,000 support. This move from $1,930 assures traders that Ether has a strong bullish outlook—one that could trigger a larger breakout toward the coveted $3,000 level.
Several indicators back the bullish theory, starting with a couple of golden cross patterns formed when the 50-day Exponential Moving Average (EMA) (red) crossed above the 100-day EMA (blue) and the 200-EMA (purple) roughly two weeks ago.
The breakout to $3,000 will greatly depend on two key levels; the validity of support at $2,000 and weakening resistance at $2,130. A break above this hurdle is critical to the uptrend’s continuation as it shows that ETH price is backed by increasing momentum.
This could also help invalidate the sell signal from the Moving Average Convergence Divergence (MACd) indicator. With a bounce from the immediate support level at 50, the MACD could rebound thus, prompting another bullish breakout.
Meanwhile, Ethereum price outlook is surprisingly strong despite the release of the Federal Reserve’s minutes of the November 1 meeting which revealed a collective take by the committee members that although the economy grew at a stronger rate in Q3 and remains resilient, inflation “remained well above the Committee’s longer-run goal of 2 percent, and participants remained resolute in their commitment to bring inflation down to the Committee’s 2 percent objective.”
All participants echoed the need to retain the restrictive economic policy if the Fed is to achieve its long-term goal of returning inflation to the desired 2%. The committee agreed to focus on the current data to inform the decisions on interest rates in upcoming meetings.
There was no mention of when the Fed could consider rate cuts. However, it is unlikely the committee will hike interest rates again this year. Overall, the US economy is still under the microscope, with inflation said to be “unacceptably high.”
This outlook could be sufficiently bearish for risk assets classes like Bitcoin and Ethereum. However, at the moment, a buoyant Ether has the potential to close the gap to $3,000.
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