🚀ETH/BTC Price Prediction: Why Is Ethereum Price Crashing Ahead Of FOMC?

📉 Ethereum Breaks Downward
Ethereum's price broke downward from a consolidation zone, invalidating the previous bullish flag. The market eagerly awaits the Federal Open Market Committee (FOMC) meeting on Wednesday to see if interest rates will change.

📊 Recent Price Action
On Tuesday, Ethereum was priced at $3,549, dropping 3.7% in 24 hours and 5.9% over the past week, according to CoinGecko. The price broke below its consolidation range, invalidating the bull flag on the 4-hour chart, although it remains above the 50-day and 200-day SMAs on the daily chart.

🔻 Bearish Scenario
If bearish momentum continues, Ethereum could find support at the 50-day SMA, coinciding with the 0.5 Fibonacci retracement level around $3,400. Further support levels are at $3,200 and $2,900.

📈 Bullish Scenario
If bulls regain control, Ethereum could test the lower boundary of the range around $3,650. A sustained rally might see it re-enter the range, moving between $3,700 and $3,950, and potentially breaking upwards to $4,200. The strongest resistance currently is at $3,650.

🤔 Why is Ethereum Crashing?
The drop in Ethereum's price coincides with Bitcoin's decline and comes a day before the FOMC meeting. Market panic is linked to uncertainty about the FOMC's decisions. Analysts from Bankrate predict that interest rates will stay at a 23-year high, with up to three rate cuts before the end of 2024. Despite this, Ethereum's fundamentals remain strong, with te mainnet generating significantly more fees than Layer 2s.

📝 Bottom Line
Investors are closely watching the FOMC meeting and Producer Price Index (PPI) data, as these could influence Ethereum's price direction. Ethereum’s strong fundamentals might sustain its price if FOMC results negatively impact the markets.