Ethereum originally held up well while Bitcoin collapsed, however after failing to break its all-time peak of $4,867.81 on November 10 when the currency made a push for it on December 1, Ethereum began to fall.
The minutes from the Federal Reserve’s December meeting were revealed on Wednesday, and the Fed pushed through with proposals to double its regular taper pace to $30 billion from $15 billion, even though it will not raise interest rates until 2022.
The news triggered a strong reaction in the cryptocurrency and general markets, indicating that the Fed’s policy change had already been factored in.
Ethereum had established a bullish trend on the daily chart in preparation for a potential reversal, and if it can gather the impetus to print a higher high on the daily chart, it might be in for a trend change.
The Ethereum Chart: On December 1, Ethereum initiated a slump, making a series of lower highs and lower lows. The crypto’s latest lower low was $3,660 on December 13 and the latest recent lower high was $4,186.16 on December 12.
Ethereum slipped marginally just under the Dec. 13 low-of-the-day low on Wednesday, but it remained near enough to the price to suggest that the crypto has now printed a bullish double bottom pattern at the level. Ethereum prices should rise in the following days if the pattern is identified.
Ethereum was exchanging at a higher-than-average volume, indicating that investor interest in the cryptocurrency has returned. Around late afternoon, Ethereum’s volume had surpassed 250,000, compared to a 10-day average of 208,907 transactions.
Ethereum is trading near the eight-day exponential moving average (EMA), however under the 21-day EMA, with the eight-day EMA falling lower than the 21-day, indicating a negative trend. The eight-day exponential moving average is now operating as a resistance level for the cryptocurrency, and bullish traders will want to see Ethereum reclaim the level as support in the near term to feel secure moving higher.