Ethereum price went parabolic in the overnight session as market conditions improved. The ETH/USD price jumped to a high of 1,536, which was the highest level since September 15th of this year. It has risen by almost 30% from its lowest level this year. Other cryptocurrencies like Velas, Kadena, and Bitcoin rose as well.
Improved market sentiment
Ethereum price rose sharply in the overnight session as the market sentiment improved. This was evidenced by the performance of the bond market and stocks. The 10-year yield slipped to 4.09% while the 30-year dropped to 4.2%. As a result, the spread between the 10 and 2-year treasuries widened.
Meanwhile, American stocks rose as well. The Dow Jones added over 337 points while the Nasdaq 100 and S&P 500 indices rose by more than 1%. This happened as the fear and greed index tilted upwards while the VIX index slipped to 28. The closely-watched US dollar index fell from the year-to-date high of $115 to $110.
Therefore, the price action of Ethereum and other cryptocurrencies is attributed to the rising possibility of a Fed pivot. Data published on Tuesday showed that consumer confidence dropped sharply in Octobr. The house price index also slipped as mortgage rates continued rising.
Therefore, there is a likelihood that the Fed will start pivoting in the coming months to prevent further deterioration of the economy. Meanwhile, a crypto pro argued that Ethereum, Bitcoin, and Solana had found a floor and that they will keep soaring. As shown below, he said that Ethereum price could soar by more than 800% from the current levels.
Ethereum price forecast
On the four-hour chart, we see that the ETH/USD price has been in a consolidation phase in the past few days. This price action ended on Tuesday as the coin jumped to the highest point since September. It has managed to move above the 50-day moving average. A closer look reveals that it rose above the neckline of the inverted head and shoulders pattern.
Therefore, there is a likelihood that Ethereum price will continue rising as buyers target the next psychological level at $1,650. A drop below $1,400 will invalidate the bullish view. Subscribe to our highly accurate S&R indicator for a more up-to-date ETH forecast.