Ethereum Price Prepares for Potential $4,000 Breakout Ahead of FOMC Meeting
The crypto market expects increased volatility due to the upcoming Federal Open Market Committee (FOMC) meeting. Most participants anticipate steady interest rates, impacting Ethereum's price near the $3,000 threshold.
Current Price Situation
- Ethereum is currently priced at $3,168 after a decline from $4,000 in early December 2024.
- The price exhibits strong support above the 50-week SMA.
- A falling-wedge pattern suggests potential for a bullish reversal.
Resistance and Bullish Patterns
- Significant resistance exists at the $4,000 mark.
- An inverted head-and-shoulders pattern aligns with this resistance level.
- Maintaining above $2,900 is crucial for a bullish continuation.
Impact of the FOMC Meeting
- Probability of steady rates is at 99.5%, based on CME Group FedWatch data.
- A previous similar scenario in April 2021 led to a 69% surge in Ethereum's price.
- A potential rate cut could enhance institutional investment in Ethereum ETFs, driving prices higher.
Ethereum may reach new all-time highs if it sustains above $2,900, with projections suggesting possible levels above $5,000 or even $7,000 following a breakout.