Ethereum price prediction: Fed and options expiry in focus

Ethereum price prediction: Fed and options expiry in focus

The Blockchain Industry: Exploring Ethereum’s Price Drift, Fed’s Interest Rate Decision, and Options Expiry

The blockchain industry is constantly evolving, driven by various factors that influence the prices of cryptocurrencies such as Ethereum. Recently, Ethereum has experienced a downwards drift in price due to a waning demand for the coin. This article will explore the reasons behind this price movement, with a particular focus on the upcoming Federal Reserve interest rate decision and the options expiry.

Ethereum’s Retreating Price

Ethereum’s price has recently slipped to its lowest level since July 7th, standing at $1,847. This decline reflects a cooling demand for cryptocurrencies in general. In fact, Ethereum is currently around 15% below its year-to-date high, which signifies that it has entered a correction phase.

The Impact of the Federal Reserve and Options Expiry

There are two key catalysts that will significantly impact Ethereum’s price in the coming days. Firstly, Ethereum’s price will react to the Federal Reserve’s interest rate decision. The Federal Reserve’s two-day meeting, commencing on Tuesday, will culminate in its decision announcement on Wednesday.

The current economic scenario in the United States is crucial as economic growth appears to be slowing down. Manufacturing PMI numbers released on Monday indicate a rise to 49, while services PMI fell to 52.4. Although the manufacturing PMI has risen, it is still below 50, signifying a contracting sector.

Additionally, inflation in the country dropped to 3.0% in June, marking a decline from the pandemic high of 9.1%. This downward trend in inflation may lead to prices eventually dropping to the Federal Reserve’s target of 2.0%, even without further rate hikes. Economic experts predict that the Federal Reserve may implement a 0.25% interest rate increase during this meeting, followed by a period of prolonged pause. Any further hikes in interest rates could potentially result in a hard landing scenario, characterized by a significant deterioration of the American economy.

The second catalyst influencing Ethereum’s price is the upcoming options expiry. Coinglass data reveals the existence of over 2,206,619 ETH calls and 755,222 puts in the options market. Historically, Ethereum has exhibited volatility preceding options expiry.

Ethereum Price Prediction

Analyzing the daily chart, it is evident that Ethereum’s price has encountered pressure over the past few days. It has dropped below the crucial resistance level at $2,025, which was also the highest point on July 14th. This particular resistance level corresponds to the upper side of the black ascending channel shown on the chart.

Furthermore, Ethereum has slightly dipped below both the 25-day and 50-day moving averages, indicating a potential continuation of the bearish trend as sellers target the next support level at $1,800. However, in the event that Ethereum moves above the resistance point at $1,900, this bearish view would no longer hold true.

How to Buy Ethereum

Investing in Ethereum has become increasingly popular, and there are various platforms available to facilitate the purchasing process. Some notable platforms include eToro and Public.

eToro

eToro offers a wide range of cryptocurrencies, including Ethereum, along with numerous crypto/fiat and crypto/crypto pairs. eToro users have the opportunity to connect with and learn from other users. They can also choose to copy trading strategies or be copied themselves.

Public

Public is an investing platform that allows users to invest in a diverse range of assets, including stocks, ETFs, crypto, fine art, and collectibles. Ethereum can be purchased on the Public platform, alongside other investment options.

In conclusion, the blockchain industry and Ethereum’s price are subject to the influence of various factors, including market demand, the Federal Reserve’s decisions, and options expiry. Understanding these dynamics is crucial for both investors and enthusiasts of the blockchain technology.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

NEAR Protocol’s HERE Wallet Takes Telegram by Storm 🚀

According to NEAR Protocol, the number of HERE wallets created on Telegram has surpassed 1 million in just ten days, ...

NFT

Metagood Raises $5 Million in Series A Funding

Discover the latest updates in blockchain technology, funding announcements, and business news for the week of Decemb...

DeFi

Google Cloud is now a validator on Polygon network.

Exciting news! Google Cloud has become a validator on the Polygon network.

Web3

New tech stack powers Web3 gaming development in dApp Store kit.

The platform for developing decentralized applications, known as dApp Store Kit, has incorporated the developer toolk...

News

Ethereum’s Dencun Upgrade: A Leap Towards Enhanced Efficiency and Scalability

The launch of the Dencun upgrade on the final Holesky testnet marks an important milestone in Ethereum's (ETH) 2024 r...

DeFi

US court orders SEC to respond to blockchain's rulemaking petition within 7 days, Circle gets Singapore MPI license, Cathie Woods buys dip in blockchain stock price.

Receive a brief summary of news related to cryptocurrencies and blockchain on a daily basis. This will cover stories ...