- Ethereum price has been in a consolidation in the past few days.
- The VIX index has formed a death cross on the daily chart.
Ethereum price has been in a consolidation phase in the past few weeks. It has remained in the narrow range of about $1,250, where it has been for a while. This price is about 40% above the lowest level in 2022. Meanwhile, the closely watched VIX index has formed a death cross, which is usually a good thing for stocks and cryptocurrencies.
VIX index death cross
Ethereum price has been under pressure in the past few days as investors reflect on the actions of the Federal Reserve. In its final monetary policy meeting of the year, the Fed decided to hike interest rates by 0.50%. It had previously hiked rates by 0.75% in the previous four meetings.
In its statement, the Fed hinted that the terminal rate will be 5.1%, which was higher than what analysts were expecting. It also hinted that rates will remain high for a while as it battles the relatively elevated inflation rate. Data published last week showed that the headline consumer price index eased slightly to 7.3% in November.
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The financial market has been in a turbulent period since the Fed delivered its rate hike. Stocks have collapsed while Bitcoin has plunged from $18,500 to $16,000.
On a positive side, the Volatility Index (VIX) has continued being under pressure. It was trading at $22.5 on Tuesday, which is lower than last week’s high of $25.86. Most importantly, the VIX has formed a death cross, which formed when the 200-day and 50-day moving averages make a crossover. Therefore, there is a likelihood that the index will likely continue falling in the coming weeks.
A low VIX figure tends to be bullish for cryptocurrency prices. Meanwhile, the fear and greed index has moved to 29 from last week’s low of 26. A higher index is usually a bullish signal.
Ethereum price prediction
The daily chart shows that the ETH price has been in a downward trend in the past few months. In this period, the sell-off is being supported by the 50-day and 100-day moving averages. It has also formed a descending channel that is shown in black. The current price is between this descending channel pattern.
The Stochastic Oscillator has moved slightly above the oversold level. Therefore, the coin will likely start a brief rebound as buyers target the upper side of the channel at about $1,500.
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