Ethereum (ETH) price is still following the BTC price action as the biggest cryptocurrency struggles to break above $30k. Crypto markets appear to be getting rid of the weak hands as the markets experience major volatility spikes in both directions. Nevertheless, our analysis suggests that ETH price may have another run before a major reversal.
On Friday, cryptocurrencies showed a positive sentiment as BTC price refreshed its weekly highs. Ethereum price also turned green and rose by 1.9% during its London session. The native asset of the biggest smart contract platform is currently trading 11% below its YTD high of $2,145.
ETH Price Shruggs Off 25 Bps Rate Hike
The US Federal Reserve hikes the interest rates by 25 bps for the third time in 2023. In the past, such rate hikes have proven to be bearish for the markets. However, this rate hike appeared to be already priced in, as no major sell-off was observed in the cryptocurrencies. In fact, BTC and Ethereum prices have risen since the news.
Despite the sideways Ethereum price action, the network has been experiencing a massive increase in activity due to the memecoin season. Investors are flocking toward the decentralized exchange like Uniswasp to buy PEPE coin, which has become the 3rd biggest meme coin by market cap. The increased network activity has sent the gas prices on the ETH network to their 12-month highs.
Ethereum Price May Retest $2,000 Soon
Technical analysis of the ETH price chart reveals that the bullish market structure of the cryptocurrency is still intact, and it may soon retest the psychological level of $2,000. There are multiple confluences that point towards this Ethereum price prediction.
A closer look at the chart shows that the price has formed a rising wedge pattern. The top region of the wedge has been acting as a resistance since January 2023. In the coming days, the price might retest the top trendline of the wedge, which lies above $2,022. The presence of the August 2022 highs in the same region makes it a big supply zone. Therefore, I expect a pullback after a retest of this level.
I’ll keep posting my updated analysis on Ethereum & other cryptocurrencies in my free Telegram group that you’re welcome to join.