Ethereum edged higher on Feb. 1 as the market braced for the outcome of the upcoming Federal Open Market Committee (FOMC) meeting. Many expect the Fed to raise rates by 25 basis points, bringing the current rate to 4.75%. Bitcoin prices rose above $23,000 on Wednesday, rising in the green.
Bitcoin (BTC) is back above $23,000 during today’s session, as traders turn their attention to this afternoon’s Federal Open Market Committee meeting.
After hitting a low of $22,874.43 on Tuesday, BTC/USD rose to an intraday high of $23,225.02 earlier today.
Today’s move saw the world’s largest cryptocurrency briefly breach its temporary ceiling of $23,200.
However, due to increased volatility due to today’s Fed meeting, the price has retreated below that point and is currently trading at $23,045.02.
This comes as the 14-day Relative Strength Index (RSI) continues to hover near the bottom at 68.00
As of writing, the index is tracking 69.83 and is likely to remain around that level until the end of the Fed meeting.
Ethereum (ETH) is up slightly on Wednesday, with the price approaching the $1,600 area.
ETH/USD rose to a high of $1,598.52 earlier in the day after bottoming at $1,569.04 the previous day.
As with Bitcoin, ETH bulls were unable to push the price above resistance, with momentum easing earlier at the time of writing.
Looking at the chart, sentiment appears to have shifted as the RSI was unable to break above the 58.00 ceiling
Currently, the index is tracking at 57.64 and the 10-day (red) moving average has also changed trend and is now down.
If this sentiment persists, there is a high probability that ETH will bottom out at $1,550.
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Will cryptocurrencies rebound after this afternoon’s FOMC meeting? Leave your thoughts in the comments below.
Elliman Dambell
Eliman brings an eclectic perspective to market analysis. He was previously a brokerage director and online trading educator. Currently, he serves as a commentator on various asset classes, including cryptocurrencies, equities, and forex, as well as a startup founder.
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