ethereum Prices came under pressure on Monday after the collapse of First Republic Bank (FRC). Investors were also waiting for the next interest rate decision by the Federal Reserve, pulling ETH back to his low of $1,827. About 107% above the 2022 minimum.
Collapse of the First Bank of the Republic
Monday’s biggest financial news Collapse of the Bank of the First Republicbecame the second largest bank in the United States. The collapse comes a week after the company said it lost more than $100 billion in the first quarter. In a statement, the FDIC said the company, the largest in the United States, will be acquired by JP Morgan.
The collapse of the First Republic makes 2023 the worst year for banks since the 2008 financial crisis. We have seen banks such as Signature, Silicon Valley Bank, Credit Suisse and Silvergate Bank collapse.
These collapses are positive for the price of Ethereum and other cryptocurrencies for two reasons.First, the collapse could mean many people moving to things like cryptocurrencies Bitcoin and Ethereum.Bitcoin gains more from this transition, but other altcoin Cryptocurrencies have a positive correlation, so things like Ethereum also benefit.
Second, the collapse means the Federal Reserve is likely to consider the health of the banking sector when it begins its meeting on Tuesday. Minutes released last month showed some officials were worried about the banking crisis.
Therefore, the Fed may consider suspending interest rates at this meeting. Another way is for the bank to decide to raise interest rates by 0.25% and then instruct a short-term strategic pause.
Changes by the Federal Reserve will be bullish for Bitcoin and Ethereum prices. Historically, cryptocurrencies tend to do well when the Fed is pivoting.
ethereum price prediction
The daily chart shows that ETH price has been bullish for the past few weeks. The coin has broken above the 50- and 25-day exponential moving averages. This is a bullish sign. It has broken above the uptrend line shown in green.
It is also just below the key resistance level of $2,032, which was last year’s August 12 high, a 23.6% Fibonacci retracement level. Therefore, a bullish breakout is likely for Ethereum as buyers target the key resistance point of $2,500.
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