Volatility in Ethereum Price!
The price of the smart contract platform Ethereum reached $1,900 with a 17% surge between June 14th and June 21st, 2023. The price increase came after the Federal Reserve announced that it did not change the interest rates at 5.25% following 10 consecutive hikes since March 2022. Since then, the Fed increased interest rates by 0.25% on July 25th, 2023. Considering that the hikes were slightly lower than expected, ETH recorded a moderate price increase of 3% at the end of the month.
According to economists surveyed by Reuters, it is expected that the US Fed will leave the fund rates unchanged at 5.50% in the next Federal Open Market Committee (FOMC) meeting scheduled for September 19th, 2023. Particularly, Ethereum experienced a 7% decline in the past three trading days. On-chain analysis suggests that it could be an indicator of upcoming events after the next Fed meeting. As the next Fed meeting approaches rapidly, a critical indicator on-chain indicates that US institutional investors have started to increase their buying pressure.
Will ETH Recover?
The positive values of Coinbase Premium Index may indicate an increased buying pressure from US-based investors on Coinbase. Additionally, the last time the Coinbase Premium Index exceeded the range of 0.30 was around July 13th. It was followed by a surge towards $1,925. Moreover, it is yet to be seen if the ETH Coinbase Premium Index will continue to rise as it did in mid-July.