The US dollar increased after the FOMC session in September. The Fed assumes that the key interest rate will increase even longer.

• The US dollar laid
after the FOMC session in September
• The Fed assumes that the key interest rate will increase for longer
• In order for the bullish tendency, Ethereum should remain over $ 1,400 $

This year had two different sections for the financial market participants - one that was shaped by the weakness of the dollar, and one that was dominated by the strength of the dollar.

The US dollar dominates both on the traditional market and on the cryptocurrency market. EUR/USD is the best example of correlation between the two markets.

He opened the year at 1.06, then rose to 1.12, where he reached his peak in the summer, and then gave up his profits. The same dollar cycle can be observed in many cryptocurrencies.

For example, Ethereum has recovered since the beginning of the trading year, reached a maximum of $ 2,000, met with resistance and then corrected. Therefore, cryptocurrency dealers may concentrate on the direction of the dollar to position themselves on the right side of the cryptocurrency market.

The meeting of the Federal Reserve in September did not change the course of the dollar

On Wednesday, the US Federal Reserve published its monetary policy decision. She decided to leave the key interest on unchanged because the youngest inflation messages are encouraging.

Since the market participants awaited the decision, the focus shifted to the press conference. During the conference, Jerome Powell said restrictively in the sense that all options remained on the table, including further interest rate increases. The restrictive part was that it indicated that future interest rate reductions may not be as strong as in the past. In other words, interest rates would remain higher.

Of course the dollar recovered.

Ethereum is caught in a tight span

Ethereum is one of the most popular cryptocurrencies. It is also very liquid compared to other cryptocurrencies.

In front of the rally, which began in 2023, Ethereum formed a opposing triangle. The good news is that such triangles ultimately appear complex corrections.

Ethereum-Diagram by Tradingview

That means that if you act as a reverse pattern as here, the following new movement is part of another pattern.

The above graphic shows that Ethereum corrected by its highest levels by 50 %, but remains in a relatively tight range. With close, one should refer to the historically high volatility on the cryptocurrency market.

Bullen may want to wait until Ethereum closes over $ 2,000 before they enter into long positions. You also want Ethereum to stay $ 1,400.

On the other hand, the bears may want the market to fall below the support area, which is provided by the $ 1,400 mark. In such a step, a decline to $ 1,000 could be possible.