Following the latest Federal Open Market Committee (FOMC) meeting, which signaled a slowing economy but the FED Officials showed a positive sign of slowing down the QT (Quantitative Tightening), BTC and Alt coins have shown a good price momentum and has successfully reclaimed critical resistance levels.
As previously expected, because of fear of growing inflation, the Federal Reserve maintained the borrowing rate at 4.25%-4.5%, unchanged since December. However, markets surged on ‘speculation’ that the Fed might implement two rate cuts this year instead of one. The anticipation of increased liquidity and policy easing sparked a sharp rally in risk assets.
Additionally, the 1-day ETH/BTC MACD indicator turned bullish as trading volume reached a two-week-high, suggesting a potential shift in favor of Ethereum. However, holding this pattern remains uncertain. Without clear policy “execution”, post-FOMC volatility has surged. This makes it harder to confirm these resistance zones as strong support levels.
However, for Ethereum to establish dominance, ETH/BTC must break key resistance at $0.025, backed by a sustained capital rotation from BTC into ETH. As of now, at the time of writing this article, ETH is being traded around $1,950 and has seen a growth of 1.4% in its price over the past week and stands at a market capitalization of $234 Billion.