Descending channel pattern and weak futures data continue to constrain Ethereum price By Cointelegraph

Descending channel pattern and weak futures data continue to constrain Ethereum price By Cointelegraph

Hodler’s Digest, Jan. 23-28 By Cointelegraph

Descending channel pattern and weak futures data continue to constrain Ethereum price

Despite bouncing from a 45-day low on April 30, Ether (ETH) price is still stuck in a descending channel and the subsequent 9% gain over the past four days was just enough to get the altcoin to test the pattern’s $2,870 resistance.

Ether/USD price at FTX. Source: TradingView

Federal Reserve monetary policy continues to be a major influence on crypto prices and this week’s volatility is most likely connected to comments from the FOMC. On May 4, the United States Federal Reserve raised its benchmark overnight interest rate by half a percentage point, which is the biggest hike in 22 years. Although it was a widely expected and unanimous decision, the monetary authority said it would reduce its $9 trillion asset base starting in June.

Ether 3-month futures premium. Source: Laevitas.ch
Ether 30-day options 25% delta skew. Source: Laevitas.ch