Ethereum's price faced a sharp decline after reaching $4800. The impact of overall market conditions on crypto assets remains a key question for investors.
Stock Market Influence on Cryptocurrencies
As the new week begins, the US stock market shows weak performance. Following record highs, the Dow Jones dropped by 0.8%, which also affected cryptocurrencies. Stocks of crypto-related companies, such as Coinbase and MicroStrategy, fell alongside Bitcoin, which retreated to $110,200. Currently, risk assets are moving in one direction, and any market stress influences crypto assets.
Technical Analysis of Ethereum
On the daily ETH/USD chart, a retreat from the upper Bollinger Band at $4800 is observed. The current Ethereum price is about $4396, indicating broader market losses and profit-taking after several weeks of gains. Key technical levels recognize support near $4385, and a break below $4200 could open pathways for re-testing the psychological level of $4000.
Ethereum's Outlook Considering Fed Policy
The yield on 10-year Treasury notes increased slightly to 4.28%, posing short-term headwinds for cryptocurrencies. However, Jerome Powell's hint at possible rate cuts supports medium-term optimism. Lower interest rates reduce the opportunity cost of holding cryptocurrencies and may boost prices for Ethereum and Bitcoin.
In the upcoming weeks, Ethereum's price is expected to oscillate with macroeconomic conditions. Successful Nvidia reports and Fed support may drive ETH prices towards the $4600–$4800 levels. However, a failure to maintain $4200 could result in a drop to $4000, a critical juncture for bulls.
