Data from Coingecko, at the time of writing, records a slight recovery for Ethereum and large cryptocurrencies. The second crypto by market cap has been trending to the downside over the past weeks and was seeing briefly breaking below $1,000 on certain venues.
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At the time of writing, Ethereum (ETH) trades at $1,180 with a 35% loss in the past 7-days. According to economist Alex Krüger, ETH’s price records a 20% loss and 20% profit during today’s trading session which could be a first in the cryptocurrency’s history.
$ETH has put in a 20% intraday round tripper today.
20% down, then 20% up.
Not sure if this has ever happened before.
— Alex Krüger (@krugermacro) June 15, 2022
Similar to Bitcoin, Ethereum is reacting to the downside of the macroeconomic situation. As the U.S. Federal Reserve (FED) announced a 75 basis points increase in interest rates, preceded by a cascade of liquidations and negative news for the crypto market, BTC and ETH were able to regain some bullish momentum.
Potentially driven by overextended selling pressure, and panic amongst crypto investors, ETH’s price bounced back from around $1,000 to its current levels. Krüger believes the current price action is part of a well-established market pattern:
(…) since December. Hawkish market expectations => prices tank in anticipation => hawkish FOMC => assets rally. Partially priced in something. Not a meme. This has been so consistent it’s developed into a pattern. It won’t last forever.
The market could see more volatility in the coming days. Krüger believes the market could continue to positively react to the FED’s announcement as it was within expectations. Thus, the bounce could see some continuation. He added:
Market liked hawkish Powell. Short rates higher (in response to increased hawkishness), long rates lower (in response to increased credibility in the Fed’s ability to reign in inflation). Hoping this sticks and we get continuation.
Ethereum Sees Short-Term Buying Pressure
Data from Material Indicators (MI) records an increase in buying pressure for ETH on crypto exchange Binance. In lower timeframes, almost all invertors classes shifted from selling to buying the current price action.
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This could contribute to ETH’s current momentum and possibly push the cryptocurrency to previous levels. However, ETH whales (in brown on the chart below) sold into today’s price action and could get in the way of any sustainable recovery.