Since the market crashed in May 2012, when its value fell to $1,790, Ethereum (ETH) has been trying to find a way up. Shanzhai coins currently have support near $2,000, but the high correlation with traditional markets has led traders to be extremely skeptical of the cryptocurrency market's recovery.
So far, the Fed has kept market efficiency in check, and uncertainty is widespread as central banks in major economies try to keep inflation under control. Given that the correlation between the crypto market and the S&P 500 has remained above 0.85 since March 29, traders are unlikely to bet that Ether will break away from the larger market any time soon.
On May 17th Jerome Powell, the chairman of the Federal Reserve, reiterated his commitment to lowering inflation by raising interest rates until costs return to "healthy levels". Powell did warn, however, that the Fed's tightening could have an impact on the unemployment rate.
Thus, although traditional markets have been informed of the financial authorities' plans for a "gentle landing", this does not mitigate the unintended consequences of achieving "value stability".
What is the next step in ETH pricing
A well-researched crypto strategist Outlines what Ethereum's main smart contract platform has.
According to a new methodology proposed by the pseudonymous analyst Cred, Ethereum may have printed out a tradable range if the $2,000 bottom remained unchanged. This could be our substitute for a while.
Aid is about $2,000 a week and at $2,500, there could be resistance. Then there's the $3,000 premium product. So if this is some kind of intermediate bottom, we're going to be dealing with the $2,000 to $3,000 range, with $2,500 as the midpoint of the range, he said.
If things continue to bounce back, stocks do well, etc., then the main objective may shift from support to resistance.