After yesterday’s Federal Open Market Committee (FOMC), the Ethereum price and the crypto market have held their ground. Those market participants expecting a return to the previous range might be disappointed as macro-economic forces
At the time of writing, the Ethereum price trades at $1,540 with a 2% profit in 24 hours and a 2% loss in the previous seven days. Other cryptocurrencies in the top crypto top 10 by market capitalization follow this trend, but the majority record positive momentum.
Ethereum Price Sustains Positive Outlook
The current Ethereum price action has come as a shock for many market participants. As mentioned, market participants expected downside pressure after the U.S. Federal Reserve (Fed) reiterated its hawkish stance.
However, the financial institution raised rates by 75 basis points (bps) within market expectations. The Fed and its Chairman Jerome Powell offered no surprise and will likely stay on their current course for 2022.
Therefore, the crypto market can sustain its levels even as equities see losses. All major narratives in the nascent asset class have been suspended, at least until tomorrow, when the U.S. government will release new economic data.
Talking about the recent price action in the crypto market, analyst Justin Bennet said:
It would be ironic if markets rallied after Powell’s attempt to squash any hope at Wednesday’s FOMC. I’m not ruling it out. And to be honest I’m eyeing a few areas during this pullback in case we get it (…) Waiting for markets to digest FOMC and avoiding Friday’s NFP volatility for now.
A separate report from trading firm QCP Capital indicates that the Ethereum price remains bullish in the long run. The first believes that “The Merge” impact on the ecosystem will become palpable in the coming months.
In that sense, “The Surge,” the next major milestone for Ethereum, will begin exercising more influence over the crypto market. This event will complete Ethereum’s transition to a more scalable ecosystem with a project transaction per second (TPS) almost twice as high as Visa and Mastercard at 100,000.
In addition, the trading firm noted a massive decrease in the ETH supply coming into the market. The amount of ETH supply issued stands at 7,000 versus 400,000 that would have been issued with the old consensus. All of these factors are poised to provide value for the ETH. Especially if macroeconomic forces mitigate their influence over risk assets.