Ethereum Price Bounces Off $2,400 Support Amid Hawkish Fed Comments
The Ethereum price has bounced off a key support level of $2,400 despite yesterday's rate hike by the US Federal Reserve.
This unexpected reaction could be a 'buy the news' moment, as investors may have already priced in the hawkish Fed comments ahead of the FOMC meeting.
Data from FedWatch indicates that odds of another rate increase by December remain high at nearly 90%, which suggests that the market had anticipated this move.
A historical 'buy' signal is about to appear as trading volumes have surged in recent weeks, potentially leading to a rally to $3,300 in the short term.
The Relative Strength Index (RSI) remains above 55, indicating momentum on the side of bulls. However, if the dollar rallies beyond expectations, it could weigh on ETH's performance and push the token down to its 200-day exponential moving average before the rally resumes.