Ethereum is the outperformer today as the number two cryptocurrency adds over three percent at $377.14. Ethereum failed to follow the strong move in Bitcoin yesterday which managed to break above the $11,000 mark. The move attributed to the Fed’s decision to keep the interest rates unchanged.
Federal Reserve kept the interest rates and the QE programme unchanged and reiterated its commitment to employment growth and an inflation target above the 2% mark. After the Jerome Powell press conference, the USD moved higher as investors were looking for extra measures that would support the liquidity.
The stronger USD put pressure in the dollar-denominated assets and Bitcoin reverse gains moving again below the 11,000 mark. ETHUSD also retreated from the daily highs around $374 back to $365.
Defi Growth Boost Ethereum
Ethereum managed to outperform the other cryptocurrencies ahead of the ETH 2.0 upgrade which will make ethereum blockchain faster and more secure. Meanwhile, the growth of decentralized finance applications boosted Ethereum as most of the Defi projects relies on the Ethereum platform.
Ethereum price looks strong today approaching the 380 mark. The recent correction in Ethereum price from the highs at 487 stalled above the 300 mark and the 100-day moving average.
An attempt to return above the 50-day moving average met strong supply. Bullish traders want to see a break above 390 in order to open more long positions. Strong supply zone is at 451 the top from September 2.
On the other side, support for ETHUSD would be met at 363.33 the daily low. Next support stands at 350.99 the low from September 10. The critical support is at 317.91 the 100-day moving average.