Ethereum is rising, but ETH price is in danger of turning $ 2.3,000 into new resistance

Ethereum’s native token Ether (ETH) rebounded from $ 2,000 in early New York trading hours on Wednesday as crypto traders rated the bureau’s prepared congressional statement.

The ETH / USD exchange rate rose 7.19% to hit an intraday high of $ 2,019.90. Similarly, Bitcoin (BTC), which has a positive 7-day correlation with ether of 0.84 from zero, has rallied, albeit by a modest 0.75%, to hit $ 32,379.

Powell presented his semi-annual monetary policy report to Congress on Wednesday, the day after the May-June US consumer price index report showed a 0.9% rise, hitting 5.4% for the first time in three decades.

In prepared remarks before testifying to Congress, Powell stated that inflation will remain high for the months to come. However, the Fed governor added that rising consumer prices would not prevent them from abandoning their ongoing bond buying policy.

Powell said the $ 120 billion monthly debt purchase – which has supported the US economy throughout the coronavirus pandemic – is still a long way off. Quoting the US labor market, he said that a full recovery was “a long time to come”.

The above statement comes after a survey by Bank of America of global fund managers who believe the world economy will continue to improve fell significantly from 91% in March to 47% in July, BTC / USD rate – one of the most busiest exchanges along with long ESGs and long commodities.

But both Bitcoin and Ether fell after Tuesday’s CPI report and before Powell’s testimony was released, drawing criticism from critics for not acting like a refuge in the face of higher consumption. Part of this is due to concerns that the Fed will phase out bond purchases in 2020 and not raise key rates until January 2023.

Powell’s assurances that their plan to cut does not yet have to generate short-term optimism in the crypto market benefit Bitcoin and Ether.

Just watch the news. Inflationary! Are any of us surprised? The government prints more dollars, so the others are worth less. Happy to be one #bitcoin Peddler. The best inflation protection.

– Tim Draper (@TimDraper) July 14, 2021

A technical return?

Ether’s recent rally also comes after a level of technical support historically capped the recent ETH / USD downtrend.

The price floor above it acts as an uptrend line in a symmetrical triangle pattern. Ether has been floating within the above structure since mid-June, as shown in the graph above, increasing the likelihood of retesting the triangle’s resistance trendline (above the $ 2,300 level) in the upcoming sessions.

However, symmetric triangles are continuation patterns that often lead prices in the direction of their previous trend. As Ether’s current triangle formation occurs during a downtrend, ETH / USD’s path of least resistance is on the downside.

As a result, Ether continues to face downside risk to technical patterns. However, the cryptocurrency performed better than expected despite the brutal sell-off of the crypto market in the second quarter of 2021.

In its Q2 report released in July, data intelligence company CoinMetrics found that Ether ended the fiscal year 13.2% higher than Bitcoins -38.88%. It writes:

“ETH is benefiting from a renewed surge in retail interest, fueled in part by the rapid rise in NFTs. Although NFT media interest peaked in March, it helped draw mainstream attention to Ethereum, resulting in a massive influx of new users. “

Much bullish outlook for Ether comes from the London hard fork. The upgrade will implement four proposed improvements to the Ethereum blockchain. One of the proposals, called EIP-1559, is to turn ETH into a deflationary asset by burning some of the fees charged by Ethereum users.

However, the investment sentiment tracker Santiment is somewhat cautious and warns traders against excessive speculation related to the hard fork in London. An excerpt from the July 7th newsletter reads:

“You could say ‘it’s different this time’ because the ETH can now be staked out and with the upcoming EIP1559 a game changer, etc. […] Right now this is all speculation and no one really knows how the market will react to the execution. It could read: “Buy the rumor, sell the news”.