The US Fed paused its tightening cycle last week, but maintained a hawkish bias, pedaling the higher-for-longer narrative. The outcome boosted the greenback and weighed on ETH/USD, but it shows resilience. It is upbeat today and tries to take out the EMA200 (at around 1,664). Successful effort would pause the bearish bias, but the popular altcoin does not inspire confidence at this stage for a meaningful recovery. The upside looks hostile, starting with an imposing daily Ichimoku Cloud.
The Fed's hawkish stance creates headwinds at a period when the regulatory environment continues to be unfavorable, despite some victories of the crypto industry over the US Securities and Exchanges Commission (SEC).
Furthermore, the technical outlook remains gloomy, after the recent formation of a Death Cross. Below the EMA200 (black line) the downside bias is intact and ETH/USD is in risk of lower lows, although sub-1,367 moves have a higher degree of difficulty.
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.