The price of Ethereum was caught up in the market turbulence that followed the release of the FED minutes.
ETH fell as low as $2,053 before rebounding off a strong trend line.
With the arrival of moving averages, a probable golden cross might be produced.
Before markets turned over and became trapped under selling pressure, Ethereum price surpassed the $2,400 threshold. Risk assets fell across the board and across multiple asset classes. Cryptocurrencies were no exception. However, there appears to be upward possibility once again, as a technical level was respected, and a technical indicator appears to be preparing for more upside.
Markets reacted negatively to the FED minutes, indicating that investors are concerned about the reflation trade. Risky assets such as cryptocurrency and stocks experienced a short-term sell-off as a result of this.
In the meantime, investor sentiment has improved and is now risk-on. This increase in sentiment should help Ethereum price recover from recent losses and move higher in search of new highs.
In terms of technical analysis, Ethereum adhered to the extremely strong ascending orange trend line established on June 21. If the price of ETH can close above this trend line, it will be a sign of its strength.
Another reason to be bullish about ETH is that the 55 and 200 four-hour Simple Moving Averages (SMAs) are converging toward each other, possibly forming a golden cross. As a result, additional purchasers would be attracted, pushing prices back up.
The first profit target would be $2,278.42, which has proven difficult to achieve in the past. Since June 17, ETH has not been close to this level.
4-hour chart of ETH/USD
The price action around $2,084 is a solid entrance point, with the ascending trend line as proved support. Ethereum is primed for a move higher, and the price action around $2,084 is a solid entry position with the ascending trend line as established support.
Expect a retest of the June 22 low at roughly $1,650 if markets turn over again and go lower./n
