Tomorrow’s Federal Reserve meeting will likely see an interest rate hike as the bank fights inflation. Ethereum fell below $1,600 in today’s session.
Bitcoin was trading below a key resistance level on Tuesday ahead of tomorrow’s Federal Open Market Committee (FOMC) meeting. After failing to break through its $20,800 ceiling on Monday, BTC slipped to a low of $20,287.46 earlier today.
Market uncertainty has increased ahead of the FOMC meeting, with many expecting the Fed to raise rates by 0.75%.
As seen in the chart, price volatility also follows a failure to rise in price strength, with the relative strength index (RSI) recently failing to break through a ceiling.
The threat of a rate hike has strengthened the U.S. dollar, which appears to be one of the factors in today’s consolidation. Bitcoin will likely continue to hover below its $20,800 ceiling until tomorrow’s tension has passed.
In addition to bitcoin, ethereum also fell on Tuesday, dropping below $1,600. After peaking at $1,630.45 earlier this week, the world’s second-largest crypto-currency hit a low of $1,555.92 today.
The decline saw ETH dip below its recent ceiling of $1,585, with price strength also falling.
At the time of writing, the 14-day RSI is currently at 66.71, which is slightly above a low of 65.00.
With the index continuing to trend above this low, bullish sentiment appears to have remained the order of the day. ETH with prices moving away from their previous lows.
Ethereum is currently trading at $1,590.79, with traders attempting to send the token back above $1,600.