Following the Fed's decision on interest rates the day before, Ethereum (ETH/USD) dropped 1.7% intraday on Thursday. Rates were increased by the Fed by 75 basis points. The price increase was mainly anticipated, and the market may have already priced it in. Additional remarks, however, increased scepticism, causing the majority of cryptocurrencies to decline.

Officials hinted at further gradual rate rises as the Fed keeps fighting inflation. Investors had thought the Fed would move more slowly in the aftermath of recession fears, but the tone was slightly hawkish. The lack of the notion of aggressive tightening also made the statements less hawkish. However, the statement implied that investors would need to prepare for higher rates for longer, which alarmed markets.

The decline in ETH trading from an intraday high above $1,600 highlighted the market caution. At the time of publication, ETH's momentum was waning and it was trading at $1,530.

At the 61.8 retracement level, ETH modestly rallies.

the TradingView website

Using Fibonacci retracement levels, Ethereum's swing high and low are $1,663 and $1,158, respectively. Retracement levels that could occur are $1,227.99 (23.6%), $1,351.61 (38.2%), $1,411.11 (50%) and $1,470.61 (61.8%).


Near the 61.8% fib level, the price is displaying some upside potential. However, there is minimal upward movement in the price and weak momentum. Despite being positive, the MACD indicator also displays slowing momentum.

Which price point for ETH is most likely?

It is improbable that ETH will recover at the present level given the weak momentum. Despite the possibility of a price recovery at the 61.8% fib level, we think the 50% fib is more plausible. The latter is a viable aim because it falls within a support zone.


Buyers can try to purchase at about $1,400 to $1,450 if ETH passes the 50% fib mark. Still, since important level(s) are still in place, we cannot declare the price of ETH bearish.

How to purchase ETH

Binance

One of the biggest cryptocurrency exchanges in the world is called Binance. It is more suitable to more seasoned investors and provides over 600 different cryptocurrencies for users to pick from. Peer-to-peer trading, margin trading, and spot trading are just a few of the many trading possibilities that Binance's users can take use of. It is also renowned for having minimal trading fees.

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Coinbase

A major bitcoin exchange is called Coinbase. Its platform is highly suited for novice investors and provides a variety of coins because there are more than 100 to pick from. Coinbase offers its users options for storing their cryptocurrency, such as the ability to deposit coins on the Coinbase exchange, and it has high degree security integrated into the platform.


Purchase ETH now using Coinbase

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