Ethereum fell to its lowest level since last Friday during today’s session, as the consolidation in crypto markets continued on Wednesday. This comes ahead of this afternoon’s Federal Reserve interest rate decision. Bitcoin was also in the red, and remains below $20,800.
Bitcoin continued to trade below $20,800 on Wednesday as market uncertainty remains high ahead of this afternoon’s Fed meeting. While markets have already anticipated a 75 basis point hike, some are also waiting for guidance from the bank, including a timeline for the policy change.
Bitcoin fell to a low of $20,359.85 earlier in today’s session, less than 24 hours after tracking a high of $20,545.35.
Looking at the chart, the token has mostly traded in the red since the weekend, following a failed breakout of the relative strength index (RSI). The index failed to break above a long-term ceiling of 63.00 over the weekend, which acted as a signal for the bears to return “to the fold“.
This afternoon’s decision will likely either reinforce this bearish pressure or give the bulls the green light to control sentiment again.
Like bitcoin, ethereum has mostly fallen at the start of the week, with the token also hitting a five-day low. After peaking at $1,595.78 in yesterday’s session, ETH dropped to an intraday low of $1,544.08.
As a result of this latest move, ethereum remains below its key resistance level of $1,585, which it broke for the first time in over a month last week.
Today, the 14-day RSI is currently at 62.74, which is down from yesterday’s high of 66.71, and below a low of 65.00. This shift in price strength highlights the gradual slowing of momentum, with the 10-day moving average (red) likely to start changing direction.
The next visible support point for the index appears to be the 60.35 level, and if this were broken, sentiment would have really changed.