Data from Coingecko, at the time of writing, records a slight recovery for Ethereum and the big cryptocurrency. The second cryptocurrency by market capitalization has been trending downward over the past weeks and has seen a brief break below $1,000 in certain places.
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At the time of writing, Ethereum (ETH) is trading at $1,180 with a 35% loss in the past seven days. According to economist Alex Krüger, the price of ETH recorded a loss of 20% and a gain of 20% during today’s trading session, which could be a first in cryptocurrency history.
ETH dollar Put 20% triple round today.
20% down, then 20% up.
Not sure if this has happened before.
– Alex Kruger (@krugermacro) June 15, 2022
Similar to Bitcoin, Ethereum reacts to the downside of the macroeconomic situation. As the US Federal Reserve (FED) announced a 75 basis point hike in interest rates, preceded by a series of liquidation and negative news for the cryptocurrency market, BTC and ETH were able to regain some bullish momentum.
Possibly due to excessive selling pressure, and panic among crypto investors, the price of ETH has bounced back from around $1,000 to its current levels. Kroger Believes The current price action is part of an established market pattern:
(…) Since December. Tough market expectations => prices fall in anticipation => FOMC optimism => assets rally. Partially priced at something. Not a meme. This has been so consistent that it has been developed into a pattern. It won’t last forever.
The market may see more volatility in the coming days. Krueger believes that the market can continue to respond positively to the Fed’s announcement because it was within expectations. Thus, the bounce may see some continuation. he added:
I love the hardcore market powell. Higher short rates (in response to increased tightening), lower long rates (in response to increased credibility in the Fed’s ability to control inflation). I hope this hangs and we get a continuation.
Ethereum under short-term buying pressure
Data from Material Indices (MI) reports an increase in buying pressure for ETH on crypto exchange Binance. In the lower time frames, almost all categories of reversals have switched from selling to buying with the current price action.
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This could contribute to the current momentum of ETH and possibly push the cryptocurrency to previous levels. However, ETH whales (in brown on the chart below) have sold out in today’s price action and could derail any sustainable recovery.