Ethereum (ETH) gained 5.4% in the past 24 hours to reach $2,427. More importantly, it is holding firm above the 200-week simple moving average (SMA) support at $2,298.
Ethereum has rebounded from this support level several times, including during the cryptocurrency market-wide decline on August 5.
Meanwhile, Bitcoin (BTC) is trading at $62,000, marking the first higher low for BTC since its all-time high in March. Bitcoin needs to clear the $65,000 resistance to continue its rally. A close above this resistance level could strengthen the upward momentum.
Bitcoin and Ethereum may be affected by macroeconomics
Looking ahead, macroeconomic factors could affect both Bitcoin and Ethereum prices. Japan’s inflation data will be released on September 20, and inflation is expected to increase slightly on an annual basis. Additionally, the Bank of Japan (BOJ) is expected to announce its interest rate decision, and markets are expecting a 0.25 percent pause on this decision.
A weak Japanese yen can be positive for Bitcoin, while a strong yen can be negative for Bitcoin. However, the Hong Kong central bank (HKMA) also cut interest rates by 50 basis points to 5.25 percent on September 19. Hong Kong’s monetary policy generally follows that of the US, as the local currency is pegged to the US dollar.
While Bitcoin and Ethereum struggle with critical technical levels, macroeconomic conditions in Japan and the US could significantly shape price action in the coming days.
Stay tuned for new information.
