Ethereum price retreated after the hawkish Federal Reserve minutes coincided with news that the next update will take place in August instead of July. The coin’s price declined to the current $2,232, which was significantly lower than yesterday’s high of $2,413. That has brought its total market capitalization to more than $260 billion.
What happened. There are two main catalysts affecting Ethereum prices. First, there is news that the next update has been pushed back to August. In a previous update, the developers hinted that it would come later this month. The proposal to push it forward to August was made by a developer in a Github forum and is expected to be made official soon.
The goal is to give people doing the current testnet more time to test it before it is rolled out in the mainnet. The London hard fork will help reduce the overall supply of Ethereum by making it deflationary. Historically, Ethereum price tends to rally ahead of a major update.
Ethereum price is also struggling after the Federal Reserve published relatively hawkish minutes. The minutes showed that the members deliberated on how to start tapering asset purchases. As a result, the US dollar rose to the highest level in more than three months. The dollar has an inverse relationship with Ether.
Ethereum price technical analysis
The four-hour chart shows that the ETH price rose to a high of $2,413 on Wednesday. It then crashed after the “disappointing” news on the next update. Along the way, the coin managed to move below the ascending trendline and the 20-day volume-weighted moving average.
It is also trading between the 38.2% and 50% Fibonacci retracement levels. It has also formed a double-top pattern whose neckline is at $2,163. Therefore, the coin may keep falling as bears target this neckline. Others will be targeting the key support at $2,000. On the flip side, a move above this week’s high will invalidate the bearish thesis.