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Friday, February 3, 2023

Ethereum Bounces Over $1.2K Despite Collapse Possibility Shown By Metrics Derivatives

High leverage demand is still lacking in Ethereum even though it has bounced over $1,200 while the Federal Reserve of the US continuously increases interest rates. Ethereum made a significant 5.6% gain on 20th December after they made a $1,150 support test on 19th December. Nonetheless, the bearish trend continues and created a 3-week descending channel. This resulted from the hike in interest rates by the Federal Reserve of the US which increased expectations. 

Jim Bianco, the owner of Bianco Research firm, mentioned that the Fed is going to tighten the economy through 2023. The central bank of Japan has also raised its interest rates. These sudden moves have pulled analysts as well as cryptocurrencies towards bearish mode. 

Sudden Moves Affect Ethereum 

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Ethereum is likely to get affected by the actions of Visa, a payment processor on a global platform, where they proposed a resolution for permitting Ethereum wallet funding in an automatic way. Recurring bill auto-payments might be possible after “account abstraction” is approved. This idea was first suggested by Vitalik Buterin in 2015. 

The Committee of Financial Services of the US House re-introduced regulation for creating new offices paralleling government agencies for financial services dealing. Exchange and Securities Commodity and Commission agency as well as the Trading Commission of Commodity Futures might expect applications from several companies. 

Ether is also expected to drop below the $1,000 level according to investors since the Dollar Index of US lost strength during 10-year treasury yields displayed stronger protection demand. CryptoCondom Trader expects the upcoming 2 months to show bearish tendencies across crypto markets

Bearish Pattern Continues In Ether 

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Both futures and options markets suggest pro traders seem untrusting regarding the recent boost of Ethereum over the $1,200 level. This current trend is favorable for Ether bears since the Feds might maintain their reduction program in the balance sheet. This program may prove highly destructive toward risk markets.

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