Crypto Industry News:
The cryptocurrency market is glowing red today. Bitcoin, Ether and other major digital assets began to decline. The reason is that the Federal Reserve is expected to increase its benchmark interest rate by 0.75% at its next meeting, which is scheduled to start today and will run for two days. If that happens, it will be the biggest hike in almost three decades.
Fed officials have already raised their benchmark interest rates on short-term loans by 1.5% this year, including by 75 basis points in June. It was the largest such increase in almost three decades.
The Fed declares that it does not intend to abandon its tightening policy until inflation drops significantly towards the annual target of 2%. The inflation rate indicated by the central bank, the core consumer price index (PCE), stood at 6.3% in May. A month later, in June, CPI inflation increased by 9.1% compared to the previous year, reaching the highest level in 40 years. We wrote more about it here.
Any move by the Federal Reserve may be contingent on a marked drop in the Consumer Price Index (CPI). It includes, among others unstable component of food and energy, and has a large impact on the consumer needs of Americans.
Technical Market Outlook:
After the Bearish Engulfing candlestick pattern was made at the level of $1,662 on the H4 time frame chart, the ETH/USD pair has been dropping like a stone. The market conditions are now below the level of fifty on the RSI indicator and the market is controlled by bears. The intraday technical support is seen on the level of $1,463 and $1,281. The larger time frame trend remains down, however the recent breakout might be a beginning of a bigger bounce even towards the level of $1,750 if the bulls will resume the rally after the pull-back.
Weekly Pivot Points:
WR3 - $1,776
WR2 - $1,660
WR1 - $1,592
Weekly Pivot - $1,545
WS1 - $1,476
WS2 - $1,429
WS3 - $1,313
Trading Outlook:
After the 13 consecutive weekly down candles on Ethereum, the down trend might have been terminated at the level of $880. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high, but the bulls had managed to increase the price of ETH by 90% so far. The next target for bulls is seen at the level of $1,710 and $1,954.