Ethereum Price Prediction as ETH Rallies 6% in 7 Days – How High Can ETH Go in 2023?

cryptonews.com:

Ethereum (ETH), the cryptocurrency that powers the smart-contract-enabled Ethereum blockchain and the second most valuable cryptocurrency in the world by market capitalization, is in consolidation mode ahead of what has been touted as one of the most important Fed policy announcements in years.

Ether was last changing hands just above $1,800, having seen a decent bounce from earlier weekly lows in the $1,720s on Tuesday. 

The cryptocurrency was last up around 6% in the last seven days.

The US central bank is expected to lift interest rates by another 25 bps, taking the federal funds target range to 4.75-5.0%.

However, following the collapse of a series of regional US banks earlier this month and amid signs that contagion continues to threaten dozens more, the bank is expected to soften its tone on the outlook for further tightening.

However, the Fed faces a balancing act, as, with US inflation still well above their 2.0% target, they won’t want to allow financial conditions to ease too much.

Ether could easily drop to fresh weekly lows under $1,700 if the Fed’s message is interpreted as more hawkish than markets had been expecting (i.e. they play down financial stability risks and emphasize the inflation fight isn’t over).

But should this create further troubles for struggling banks, that could come to crypto’s aid once again, as investors move funds to assets deemed as “hedges” to weakness in the traditional financial sector (i.e. gold and blue chip cryptos like Bitcoin and Ether).

Alternatively, if the Fed comes across as more dovish than markets had been expected, that could trigger broad risk-on, which would likely lift Ether.

ETH/USD bulls would be eyeing a test of last August’s pre-“Merge” highs in the $2,030s, a further