Ethereum price cracks under pressure as Super Thursday gets underway
- Ethereum price tanked over 2.5% on the back of a more hawkish Fed forecast on Wednesday.
- ETH slides further as four big central banks are set to issue their hikes and forecasts on Thursday.
- Expect to see a return to $1,243 in search of support before an uptick gets activated.
Ethereum (ETH) price slid lower Thursday morning after the Fed and its FOMC rate decision fell mostly in line with what markets were expecting, although most analysts retained a more hawkish undertone. This has scared or at least triggered some doubt amongst traders taking their profits after the US CPI’s negative surprise. With today’s four central banks producing announcements, markets will face heavy volatility before the more calm end of the year kicks in.
ETH needs to survive today, and from there it will be easy-going
Ethereum price might be dipping lower, but there is a silver lining to it, which is that all innall the sell-off has not been that massive. Although the Fed meeting was quite hawkish, markets did not tremble or roll over but stayed quite steady. As long as ETH can hold its support level at $1,243, the upside will be granted in the coming days toward New Year.
ETH is thus set to bounce off $1,243 and pop back toward that monthly pivot at $1,345. With a double top forming, the next test should be the right one to break it. Once above there, it is not that far anymore to reach $1,426, which means a nice 13% gain for traders that stick to their position going into the new year.
ETH/USD daily chart
On Thursday four big central banks are set to make their rate decisions: the Swiss, Norwegian, European and British central banks are lined up throughout the day. Should one of them fall out of line and hike more severely, together with a sharp hawkish comment, markets could dip even more. Support at $1,243 would break down and trigger an excursion toward $1,100. If that tone continues next week, $1,073 could be touched by Christmas eve.