Ethereum has experienced a momentary lift in sentiment today following a 3.31% move to the upside.
The world’s second largest cryptocurrency remains in a gruelling downtrend on all higher time frames, although a daily close above $3,050 would be the first step to confirming a bullish reversal.
At the time of writing it is trading at $2,700 as the crypto market extends a recent bounce on the back of peace talks between Russia and Ukraine.
The Federal Reserve is expected to announce a rate hike later today, the severity of which looks set to determine the direction of the market for the duration of the week.
A rejection and subsequent lower high in the $2,850 region could be catastrophic for Ethereum, with downside targets remaining at $2,350 and $1,700.
Much of it will depend on the direction of Bitcoin, which is back trading above $40,000 following a week of consolidation around $39,000.
If Bitcoin can begin to take out levels of resistance at around $45,000, Ethereum will likely follow and shake off the recent bearish price action.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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