Bitcoin, Ethereum Technical Analysis: ETH Nears $1,700, Fed Prepared to Maintain Rate Hikes

Ethereum closed in on the $1,700 level on Wednesday, as markets reacted to comments from U.S. Federal Reserve Chair Jerome Powell. Speaking after Tuesday’s session, Powell hinted that the Fed could continue to hike rates, should the data show the need for action. Bitcoin was also boosted by the news, climbing back into the $23,000 region.

Bitcoin

Bitcoin (BTC) moved higher on Wednesday, following comments from Federal Reserve Chair Jerome Powell.

Speaking yesterday, Powell stated, “The reality is we’re going to react to the data. So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more than is priced in.”

BTC/USD rose to an intraday high of $23,367.96 earlier today, less than 24 hours after hitting a low of $22,781.95.

Looking at the chart, the move pushed bitcoin to its strongest point in four days, and came as the 14-day relative strength index (RSI) ran into a ceiling.

The index rose to a ceiling at 65.00, however momentum was not strong enough to break out of this point.

As of writing, the index is tracking at 62.92, with BTC falling from earlier highs, and currently trading at $23,195.36.

Ethereum

Ethereum (ETH) extended recent gains today, with prices breaking out of a key resistance point in the process.

Following a low of $1,628.67 on Tuesday, ETH/USD jumped to a peak of $1,688.53 during the hump-day session.

As a result of today’s gains, the world’s second largest cryptocurrency climbed past a resistance level at $1,675.

Similar to bitcoin, this move pushed ETH to its highest point since Saturday, with the RSI also hitting a four-day peak.

At the time of writing, the index is at a reading of 62.97, which is slightly below a ceiling at 64.00.

ETH bulls will likely attempt to break this resistance in the coming days, which will inevitably mean prices move back above $1,700.

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