ETH back above $1,200 as Federal Reserve prepares to pivot policy

Ethereum moved back above $1,200 on Thursday, as markets continued to react to the latest Federal Open Market Committee (FOMC) minutes. Yesterday’s report suggested that the U.S. Federal Reserve may pivot to lower interest rate hikes.”coming soon“. Bitcoin was largely unchanged during today’s session.

Bitcoin

Bitcoin mostly consolidated on Thursday, following reports that the U.S. Federal Reserve may be ready to move away from its aggressive rate hike policy. Wednesday’s FOMC minutes showed that “a substantial majority of participants felt that a slower pace of rate hikes would likely be appropriate soon.“

This news comes as inflation in the U.S. begins to slow after several consecutive rate hikes.

After a move to an intraday high of $16,771.48 on Wednesday, Bitcoin is trading at $16,544.58 as of this writing. The chart shows that the 14-day relative strength index (RSI) failed to break through a ceiling at 40.35.

Currently, the index is trading at the 39.90 level, with momentum moving toward a downtrend, and in particular toward a low of 38.00.

Ethereum

On the other hand, ethereum advanced during today’s session, with the token surpassing the $1,200 level. Ethereum hit a high of $1,211.63 earlier in the day, less than 24 hours after hitting a low of $1,153.53.

The move saw ethereum surpass a recent resistance level of $1,180, hitting a five-day high.

As can be seen on the chart, the price rise comes as the RSI climbs above a ceiling at 42.00, and currently sits at 42.50. Despite this, there is a higher resistance point at 43.00, which has triggered some bulls to liquidate their positions.

In order to reach $1,250, which seems to be the goal of the remaining bulls, the RSI will first have to break above 43.00.