Ethereum (ETH) price has changed little recently and remains in a tight range between around $1,300 and $1,200. That’s significantly lower than this year’s high, which was $3,800.
Meanwhile, the much-vaunted VIX index has formed a “death cross” formation, which generally bodes well for stocks and cryptocurrencies.
Macroeconomic Factors Affect the Crypto Market
Cryptocurrency prices have been under pressure lately as investors are concerned about recent interest rate hikes and the possibility of a recession. At its last monetary policy meeting of the year, the US Federal Reserve decided to raise interest rates by an additional 0.50%. At each of the previous four meetings, it had raised interest rates by 0.75%.
The Federal Reserve statement said the final interest rate will be 5.1%, which was above analysts’ expectations. He also hinted that interest rates will remain high for some time to come as he battles the relatively high rate of inflation. Data released last week showed that the US CPI edged down to 7.3% in November.
The financial market has been in a turbulent phase since the Fed raised interest rates. Stock prices fell while bitcoin fell from $18,500 to $16,000.
On the positive side, the volatility index (VIX) remains under pressure. It was 22.5 yesterday, it was 25.86 last week. More importantly, the VIX formed a death cross formation. This occurs when the 200-day and 50-day moving average lines intersect. It is therefore likely that the index will continue to fall over the next few weeks.
A low VIX tends to have a positive impact on cryptocurrency prices. Meanwhile, the cryptocurrency’s Fear & Greed Index climbed to 29 after hitting a low of 26 in the past week. A higher value indicates that investors are less fearful.
Ethereum Price Prediction
The price chart shows that the price of ETH has been in a downward trend for a few months. During this period, the selloff was supported by the moving lines of the 50- and 100-day moving averages. Additionally, a descending channel has formed on the chart, which is shown in black. The current price is in this channel.
The Stochastic oscillator moved slightly above oversold territory. Therefore, the coin is likely to experience a brief bounce if buyers target the top of the channel around $1,500.
On this page we explain how to buy Ethereum.