Data from Coingecko, at the time of writing, records a slight recovery for Ethereum and large cryptocurrencies. The second crypto by market cap has been trending to the downside over the past weeks and was seeing briefly breaking below $1,000 on certain venues.<\/p>\n
Related Reading |\u00a0TA: Ethereum Could Resume Decline Below $1,100, Bears In Control<\/p>\n
At the time of writing, Ethereum (ETH) trades at $1,180 with a 35% loss in the past 7-days. According to economist Alex Kr\u00fcger, ETH\u2019s price records a 20% loss and 20% profit during today\u2019s trading session which could be a first in the cryptocurrency\u2019s history.<\/p>\n
$ETH has put in a 20% intraday round tripper today.<\/p>\n
20% down, then 20% up.<\/p>\n
Not sure if this has ever happened before.<\/p>\n
\u2014 Alex Kr\u00fcger (@krugermacro) June 15, 2022<\/p>\n\n
Similar to Bitcoin, Ethereum is reacting to the downside of the macroeconomic situation. As the U.S. Federal Reserve (FED) announced a 75 basis points increase in interest rates, preceded by a cascade of liquidations and negative news for the crypto market, BTC and ETH were able to regain some bullish momentum.<\/p>\n
Potentially driven by overextended selling pressure, and panic amongst crypto investors, ETH\u2019s price bounced back from around $1,000 to its current levels. Kr\u00fcger believes the current price action is part of a well-established market pattern:<\/p>\n
(\u2026) since December. Hawkish market expectations => prices tank in anticipation => hawkish FOMC => assets rally. Partially priced in something. Not a meme. This has been so consistent it\u2019s developed into a pattern. It won\u2019t last forever.<\/p>\n
The market could see more volatility in the coming days. Kr\u00fcger believes the market could continue to positively react to the FED\u2019s announcement as it was within expectations. Thus, the bounce could see some continuation. He added:<\/p>\n
Market liked hawkish Powell. Short rates higher (in response to increased hawkishness), long rates lower (in response to increased credibility in the Fed\u2019s ability to reign in inflation). Hoping this sticks and we get continuation.<\/p>\n
ETH\u2019s price trends to the downside on the 4-hour chart. Source: ETHUSD Tradingview
\nEthereum Sees Short-Term Buying Pressure<\/p>\n
Data from Material Indicators (MI) records an increase in buying pressure for ETH on crypto exchange Binance. In lower timeframes, almost all invertors classes shifted from selling to buying the current price action.<\/p>\n
Related Reading |\u00a0Tron Falls Sharply As Sun Scrambles To Save Stablecoin<\/p>\n
This could contribute to ETH\u2019s current momentum and possibly push the cryptocurrency to previous levels. However, ETH whales (in brown on the chart below) sold into today\u2019s price action and could get in the way of any sustainable recovery.<\/p>\n
Investors buy into ETH\u2019s price action on lower timeframes, but whales (in brown on the chart) keep selling. Lower timeframes. Source: Material Indicators.<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Data from Coingecko, at the time of writing, records a slight recovery for Ethereum and large cryptocurrencies. The second crypto by market cap has been trending to the downside over the past weeks and was seeing briefly breaking below $1,000 on certain venues.<\/p>\n
Related Reading |\u00a0TA: Ethereum Could Resume Decline Below $1,100, Bears In Control<\/p>\n
At the time of writing, Ethereum (ETH) trades at $1,180 with a 35% loss in the past 7-days. According to economist Alex Kr\u00fcger, ETH\u2019s price records a 20% loss and 20% profit during today\u2019s trading session which could be a first in the cryptocurrency\u2019s history.<\/p>\n
$ETH has put in a 20% intraday round tripper today.<\/p>\n
20% down, then 20% up.<\/p>\n
Not sure if this has ever happened before.<\/p>\n
\u2014 Alex Kr\u00fcger (@krugermacro) June 15, 2022<\/p>\n
Similar to Bitcoin, Ethereum is reacting to the downside of the macroeconomic situation. As the U.S. Federal Reserve (FED) announced a 75 basis points increase in interest rates, preceded by a cascade of liquidations and negative news for the crypto market, BTC and ETH were able to regain some bullish momentum.<\/p>\n
Potentially driven by overextended selling pressure, and panic amongst crypto investors, ETH\u2019s price bounced back from around $1,000 to its current levels. Kr\u00fcger believes the current price action is part of a well-established market pattern:<\/p>\n
(\u2026) since December. Hawkish market expectations => prices tank in anticipation => hawkish FOMC => assets rally. Partially priced in something. Not a meme. This has been so consistent it\u2019s developed into a pattern. It won\u2019t last forever.<\/p>\n
The market could see more volatility in the coming days. Kr\u00fcger believes the market could continue to positively react to the FED\u2019s announcement as it was within expectations. Thus, the bounce could see some continuation. He added:<\/p>\n
Market liked hawkish Powell. Short rates higher (in response to increased hawkishness), long rates lower (in response to increased credibility in the Fed\u2019s ability to reign in inflation). Hoping this sticks and we get continuation.<\/p>\n
ETH\u2019s price trends to the downside on the 4-hour chart. Source: ETHUSD Tradingview
\nEthereum Sees Short-Term Buying Pressure<\/p>\n
Data from Material Indicators (MI) records an increase in buying pressure for ETH on crypto exchange Binance. In lower timeframes, almost all invertors classes shifted from selling to buying the current price action.<\/p>\n
Related Reading |\u00a0Tron Falls Sharply As Sun Scrambles To Save Stablecoin<\/p>\n
This could contribute to ETH\u2019s current momentum and possibly push the cryptocurrency to previous levels. However, ETH whales (in brown on the chart below) sold into today\u2019s price action and could get in the way of any sustainable recovery.<\/p>\n
Investors buy into ETH\u2019s price action on lower timeframes, but whales (in brown on the chart) keep selling. Lower timeframes. Source: Material Indicators.<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-1289","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=1289"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1289\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=1289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=1289"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=1289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}