Ethereum Price Movement Reflects Bitcoins Is this Positive or Negative News
Crypto analyst Josh has indicated that Bitcoin is showing a new short-term signal worth paying attention to, while Ethereum is struggling with key resistance levels after rebounding from crucial support. The release of the latest CPI numbers, revealing 3.3% year-over-year inflation, prompted a rapid increase in Bitcoin’s price.
Following this, the Federal Reserve meeting took place, where it was decided to keep interest rates unchanged. However, the Fed hinted at a reduction in the number of rate cuts expected later this year, possibly only one instead of the anticipated two to three cuts. This led to a situation of “buy the rumor, sell the news” as the positive CPI numbers initially caused a surge, but the Fed’s cautious approach to rate cuts resulted in a retracement of those gains.
Looking ahead for Bitcoin, the analyst highlighted that recent events have had a negative impact on its price. Presently, Bitcoin is consolidating in the short term on the charts, while maintaining a bullish trend in the longer time frames. Furthermore, Bitcoin is forming an inverse Head and Shoulders pattern, a bullish sign that is dependent on breaking above the resistance levels of $71.7K to $74K. The potential target for this breakout is around $86K to $87K. Support for Bitcoin is currently at $67K to $68K, with resistance between $72K and $74K, resulting in a neutral outlook as long as the price remains within this range.
Discussing Ethereum, the analyst mentioned that in the short term, Ethereum recently bounced back from the 38.2% Fibonacci support level around $3,480 on logarithmic settings. Below this level, the 50% retracement support is at approximately $3,340, with the golden pocket support ranging between $3,170 and $3,220. On the 8-hour ETH to USD chart, Ethereum’s price mirrored Bitcoin’s movements by rebounding from around $3,450 but is currently facing resistance at the golden pocket area between $3,600 and $3,650. If ETH breaks above $3,650 with confirmed candle closes, further resistance is expected between $3,800 and $3,900.
Turning to Solana, the analyst observed that the coin is exhibiting similar price action to Ethereum. Solana bounced almost perfectly from the support area between $140 and $144, particularly around $145. It is now challenging strong resistance at $160, a significant level of support and resistance in the past. If Solana manages to break and close above $160, the next resistance zone is between $170 and $175. However, as long as Solana remains within this support and resistance range, it is likely to continue trading sideways in the short term.
Tags: Bitcoin, Crypto news, Cryptocurrency, Ethereum, Price Analysis.