- With an intraday jump, the Ethereum price shows sustainability above the neckline support of long-coming head and shoulders pattern.
- On-chain data shows Ethereum records a steady growth in its active addresses, making an average of 163K new addresses per day.
- Bank of Japan lifted its policy rate to 0.75%, the highest level seen since 1995, as part of monetary normalization.
ETH, the native cryptocurrency of the Ethereum ecosystem jumps 5.3% during Friday’s U.S. market session to reach $2,977. The buying pressure followed market optimism that normalized Japanese rates for global risk appetite without immediate liquidity squeezes. Along with broader market support, Ethereum price gained additional as the network recorded a surge in new wallet creation.
BoJ Hikes Rates to 0.75% as ETH Jumps 5% on Macro Relief
On Monday, December 19th, the Bank of Japan raised the interest rate to 0.75%, marking its highest level since 1995. This step was the further step in ongoing efforts to normalize conditions amid inflation in excess of the 2% target. Japanese government bond yields reacted with bond yields rising, such as the 10-year note exceeding 2%.
Digital asset markets registered gains in the immediate aftermath. Ethereum advanced over 5% in the trading sessions, coming close to $2,975-$2,976. Broader cryptocurrencies also marked upward movements, alongside high volumes.
On-chain indicators showed increased activity on the Ethereum blockchain during the month of December. Analytics from Santiment reported significant daily growths in the number of new address formations, with that number reaching 197,380 on December 2 and then 195,460 on December 15. Average daily creations amounted to about 163,000, much greater than the 124,000 creations noted in the month of July.
Discussions between market observers showed diverse views. Some commentaries focused on patterns of weakening peaks in price charts and prospects of corrections in traditional equities affecting higher-risk holdings.
The policy adjustment was carried out as the pressure from externalities abated to a certain extent, with reduced tensions in international trade relations. The yen came under pressure after the announcement; equity indices in Japan had advanced.
Key Support For Ethereum Price in Current Correction
Over the past four months, the Ethereum price witnessed a steep correction from $4,955 to current trading value of $2,967. This downswing displayed with fresh lower high formation and increasing volume accentuates strong conviction from sellers.
The falling ETH price has started to stabilize above $2,700 as shown in the chart below. A deep analysis of the technical chart shows this falling price developed into head and shoulders patterns. This chart setup is displayed by three peaks i.e., left shoulder, long head and right shoulder.
If the pattern holds true, the Ethereum price could revert 6% down and challenge the bottom neckline support for a bearish breakdown. The momentum indicator RSI down to 45% accentuated a general bearish sentiment in price to support prolonged downtrend. The post-breakdown could push the other 25% down to hit $2,000 psychological support.
On the contrary, if coin price managed to shows sustainability above the neckline support, the buyers could regain control over this asset.
Also Read: Tron Integrates with Base to Boost Cross-chain Access of TRX
Source: https://www.cryptonewsz.com/ethereum-finds-macro-relief-and-network-growth/