Ethereum price targets $2k as fear and greed soars

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Ethereum price momentum moderated on Wednesday as investors reacted to improving market conditions. ETH rose to a high of $1,612, the highest level since November 6 last year. It has jumped more than 47% from its lowest point in December. So, what’s next for ETH price?

Fear and greed index increases

Ethereum There has been a strong bullish trend over the past few weeks as the mood in the crypto market has improved. This growth has coincided with the rapid growth of other coins such as bitcoin, litecoin and OKB.

Crypto prices have risen for a number of reasons. First, it was accelerated by falling inflation in the United States. Data published last week showed the headline Consumer Price Index (CPI) fell from 7.1% in November to 6.5% in December.

Core consumer inflation also eased to 5.7% in December. This means that inflation has declined in the last six months. In addition, wage inflation has started trending downward even as the unemployment rate has dropped to 3.5%.

Therefore, investors believe that the Federal Reserve will start making changes to its interest rate policies in the coming months. The Fed hiked rates to between 0 and 0.25% in January 2022 and to more than 4% in December. Therefore, with inflation declining, there is a possibility that the Fed will change its tone.

Second, the Fear and Greed index has recently moved from Fear to Greed. The one tracked by CNN has moved to 65 while the Crypto Fear and Greed Index has risen to 52. Historically, Ethereum and other cryptocurrencies thrive when the index is rising.

Third, Ethereum has seen total value locked (TVL) in Ethereum rise to nearly $27 billion, Lido’s TVL has increased by 31% over the past 30 days while Convex and Aave have seen their TVL jump over 25%.

Ethereum Price Prediction

ETH/USD Chart by TradingView

The daily chart shows that the price of ETH has been in a bullish trend over the past few days. As it increased, it moved above the upper part of the descending channel shown in black. The coin also rose above the key resistance level at $1,354, which was the highest point on December 15.

It also bounced above the 25-day and 50-day moving averages, while the relative strength index (RSI) moved towards overbought levels. Therefore, the coin is likely to continue rising as the buyers target the key $2,000 resistance.

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