March 18th Technical Analysis: Ethereum
ETH Could Rise to $,2000 But Pullback Likely
The Ethereum price is up slightly after the Fed pledged to continue with the easy money policies. ETH is trading at $1,830, which is about 7% above its lowest point yesterday. On the other hand, Cardano price has surged and overtaken Binance Coin to become the third-biggest digital currency in the world. Bitcoin price has risen by more than 5%.
What happened: The Fed concluded its two-day monetary policy meeting yesterday. As was widely expected, the bank decided to leave interest rates unchanged at the range of 0.0% and 0.25%. It also pledged to continue with its asset purchase program, even as it predicted that the economic rebound will continue.
As a result, the US dollar declined after the dovish rate decision, while risk assets like Ethereum and Bitcoin rose. Before the rate decision, some analysts were expecting the bank to provide hints of future tightening because of the performance of the bond market.
Ethereum price forecast
The ETH price is trading at $1,830, which is 40% above this month’s low. On the four-hour chart, the price seems to be forming a head and shoulders (H&S) pattern, which is usually a bearish signal in technical analysis. The price is also slightly above the 15-day and 25-day exponential moving averages (EMA). Notably, it is just 10% below the all-time high of $2,040.
Therefore, in my view, the overall trend remains bullish, and that the currency will retest the all-time high in the near term. However, because of the H&S pattern, we should not rule out a short-term pullback before the price settles comfortably above $2,000.