Ethereum price is in consolidation following last week’s strong move to a seven-month high roughly at $1,850. The second-largest cryptocurrency followed closely in Bitcoin’s footsteps as the bellwether cryptocurrency strengthened its bullish outlook amid the banking crisis in the United States and Switzerland.

Experts have laundered Bitcoin and Ethereum for holding steady even as the global financial system holds loosely to the very edge of a cliff. Yat Siu, the CEO of Animoca, Asia’s largest investor in blockchain said during the Hong Kong Web3 Investment Summit earlier in the week that the two top cryptos acted as a safety net.

“If you take a look what happened recently with the whole development with Silicon Valley Bank, which was obviously shocking, and with Credit Suisse being taken over by UBS…actually the narrative was played out quite differently for crypto. It started to actually bifurcate as some people had predicted, which is that sort of future, let’s say, safety net,” Siu said via a video link.

What Siu means is that we are likely to see an influx of investors into digital assets and particularly BTC and ETH. “These cryptocurrencies have made notable gains just as the banking crisis rose to prominence. It’s not a coincidence. I think what we’re seeing now is a flight of regular money to some cryptocurrencies,” Siu told Forbes in a written statement.

Ethereum price is up 5.4% in seven days based on price data from CoinGecko and 15.2% in a fortnight. Currently, the largest smart contracts token is doddering at $1,795 at the time of writing.

Its 24-hour trading volume is up by 6% to $10.60 billion ahead of the much-awaited Federal Open Market Committee (FOMC) decision on interest rates later on Wednesday.

Evaluating How The FOMC Decision Could Impact Ethereum Price

Market watchers are anticipating a 25-basis point interest rate hike later in the day with an expected reaction from Ethereum and Bitcoin prices. A higher hike of let’s say 50 basis points could be catastrophic to the market, however, it is unlikely amid the banking crisis in the US.

Earlier this month, Fed Chair Jerome Powell had hinted at an interest rate hike, higher than expected due to a strongly performing economy. At the time, Ethereum price dropped to $1,725 before recovering to $1,850 during the banking nightmare in the United States last week.

Experts are advising traders to make use of stop loss as a risk management strategy to avoid massive losses in case of increased market volatility.

Ethereum Price Boxed Between a Rock and a Hard Place

Ethereum is trading at $1,795 while bulls battle the immediate resistance brought about by the 100-day Exponential Moving Average (EMA) (line in blue) around $1,830. On the downside, ETH sits on top of seemingly firm support highlighted by the 50-day EMA (line in red) at $1,723.

A break above the seller congestion at $1,830 is crucial for the continuation of ETH’s uptrend eyeing the second leg from $2,000 to $3,000. On the weekly chart, the Moving Average Convergence Divergence (MACD) indicator dons a buy signal.

The position of the MACD line in blue above the signal line in red implies that the odds favor a bullish outlook in both the short term and the long term. Coupled with the green histograms above the mean line, it means Ethereum price has a higher probability of breaking above $2,000 than dropping to $1,000.

Meanwhile, the market profiling indicator common among traders, Point of Control (POC) and Value Area (POC VAH/VAL) show Ethereum price struggling to weaken resistance at the daily open (dOpen) around $1,808 but support on the downside is provided by the weekly open (wOpen) at $1,788.

The Value Area refers to a range of prices on the chart, where most of the trading volume occurred on the previous trading day. In other words, it shows where institutional money is coming in or going out from, making it easy to spot confluence support and resistance levels.

That said, traders would be expecting an intraday leg up toward $1,900 and $2,000 if Ethereum breaks and settles above the dOpen. On the other side of the fence, a solid slide beneath the wOpen could see ETH price dropping to test $1,728, the previous week (VAH).

If the potential volatility due to the market’s reaction to the FOMC decision intensifies, the intraday drop could extend to $1,725, the weekly Point of Control (wPOC).

Meanwhile, some key levels stand out on the four-hour chart including the support provided by the main ascending trendline, as illustrated. A retest of this line could see ETH sweep through more liquidity to jumpstart its uptrend to the previous day Value Area (pdVAH) roughly at $1,830.

As established earlier, a subsequent move above $1,830 could pave the way for Ethereum price to strengthen the bullish leg to $1,900 and $2,000.

The stability in the market has been accentuated by traders holding positions ahead of the FOMC decision. According to the On-Balance-Volume (OBV) indicator, the inflow and outflow volumes of money are relatively balanced.

Depending on the Fed’s decision, we could see a spike to $1,830 and consequently $1,900, or a slump to the ascending trendline support near the previous day VAH (pdVAH), as shown on the four-hour chart. If push comes to shove, Ethereum price could ease into a pullback eyeing $1,700, the previous month VAH (pmVAH).

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