The cryptocurrency market, Ethereum included, being bearish since the beginning of 2022 has arrived at its lowest point in May. This month has sent most coins to their lowest points, marking a new all-time-low in 2022. Ethereum (ETH) prices, for instance, has seen its lowest point with the price falling earlier to $1599, the lowest point in two years. The bulls seemed to defend this lowest region and pushed the price higher again. ETH/USD prices tested $2000 before falling this week and currently ranging at $1943.
Following the series of pullbacks Ethereum faced this week, the bulls seek to create weekly support for the coin at $1900. The price has rebounded severely this week, and many may consider it new support for Ethereum. The pertinent question is: Will this support be sustainable?
Some analysts believe that the crypto market is currently in a bear season caused by the recent hikes in interest rates by the Fed Reserve. Investors then divert their attention to less risky assets outside crypto. Hence we saw a significant amount of capital flow out from the crypto market into investment in the US dollar. It has kept the prices of Ethereum, Bitcoin (BTC), and other cryptocurrencies very down till the present moment.
What's the next target for Ethereum?
The bulls are struggling to bring back the price of Ethereum above the previous support at $2000, which is gradually becoming the new resistance at this point. If the bulls manage to close the price above $2000 this week, that will be a good sign for Ethereum.
However, suppose the price of Ethereum fails to close above $2000 this week. Indication from the bearish dominance is a pointer to a further downside for Ethereum to mark the end of the month.
What does other Fundamental Factor suggest for Ethereum?
The primary fundamental factor keeping down the price of Ethereum, as we have pointed out, is the Hawkish stance of the Fed towards interest rate hikes. Buyers' appetite has reduced significantly for risky assets such as Ethereum and other cryptocurrencies.
The Fed Chairman - Jerome Powell, had reinstated his resolve earlier on Tuesday, May 17, during the Fed session. He is determined to get inflation down by raising interest rates until prices fall back toward a "healthy level." Some suggest that a further increase might as well be around the corner in June. Only adverse outcomes to come upon Ethereum prices and other crypto assets if the Fed maintains this position during the next session.