The RSI indicator is in a bearish area of 66.26, demonstrating the weakening of the bullish trend, which might precede higher prices. Ether emulates other altcoins, rising by 100% above the minimum marked in previous months, showing the current crypto market expectations.
The price of Ether (ETH), the native token of the Ethereum network, has remained between USD 880 and USD 2,000 for five months. Amid a recent short-term bullish trend, there are expectations about reduced aggressiveness in the monetary policy in first-world countries.
From a broad perspective, the price of Ether seems to be in an accumulation period. The decisions by the Federal Reserve (Fed) and the collapse of the Terra (LUNA) ecosystem in the previous bullish market took it to the limit. That might allow the cryptocurrency to rebound from the extreme fear in the crypto market.
The relative strength index (RSI) shows the weakening of the bullish trend as it is in a bearish area of 66.26. There might be a reversal to the downside before the price continues rising. Ether is probably closer to the bottom of the current cycle than to the top.
The price of Bitcoin (BTC), the pioneering cryptocurrency, always influences the rest of the crypto market. A rise in BTC would confirm the predictions about the price of ETH for the coming weeks.
Further stability by the Fed would help Bitcoin maintain the balance of the range starting on June 17th. That would confirm the proposed scenario, although BTC is a risky asset.
The Possibility of a Bearish Scenario Depends on External Factors
Nobody should dismiss the possibility of a bearish scenario, as the bullish projection shown in available information might change. Given good risk management, the worst situation in the crypto market is that the opposite will occur.
Following the Fed meeting, among the fundamentals to consider is setting aggressive conditions for the markets. The war in Ukraine might escalate while Russia might continue trading its commodities in Bitcoin. Besides, there might be a widespread failure among European banks like Credit Suisse.
Regardless of the situation, the market is always right and may invalidate any predictions about the price of crypto assets like Ether. Amid that scenario, the estimated target for ETH would be at the USD 1,134 level.
The crypto market is looking at the interest rate hike by the Fed and the state of the European financial sector. One or another scenario will occur, depending on what they decide.
The Ether Price Follows the Trend of the Overall Altcoin Market
Ether emulates the behavior of other altcoins, rising by 100% above the minimum marked in previous months. That remarkable recovery shows the current expectations about the crypto market conditions.
Ether is trading at around USD 1,540 and has accumulated a 0.9% loss over the last 24 hours. While its daily trading volume is above USD 28.76 billion, its market capitalization is about USD 185.92 billion, according to CoinGecko.
Investors should research Ether before buying it to know its all-time high, behavior, and possible future price. That will help them make better trading decisions and reduce the risk of losing money. However, it is only a matter of time before seeing where the market will take the native token of Ethereum.
By Alexander Salazar
