Ethereum Price To Hit $2,000 After FOMC Data? Popular Analyst Predicts Best Level To Buy

Ethereum price starts moving toward $1,700 again after the U.S. FOMC Minutes indicates a somewhat dovish stance of the U.S. Federal Reserve. ETH price currently trades at $1,669, up over 4% from a 24-hour low of $1,604. Fading fear of another 50 bps by the Fed brings positive sentiment among ETH traders.

Almost all FOMC participants agreed with a rate hike of 25 bps and a few officials favored raising it by 50 bps, minutes from the last meeting showed. However, Fed officials to rely on more data on inflation and jobs for considering a pivot.

Popular crypto analyst Michael van de Poppe believes that $1,600 is a great level for going long on Ethereum. As Ethereum price fell due to fears of hawkish U.S. Fed planning to raise interest rates by 50 bps in March.

Ethereum Price. Source: Michael van de Poppe

He predicts Ethereum price will continue moving upward from here. The analysis indicates that ETH price could break above the $1700 resistance level, with a possible move to $2000.

Glassnode reports that the amount of supply in 3-6 months (1d MA) just reached a 16-month high of 14,190,275.522 ETH, indicating an increase in interest among short-term buyers.

Ethereum Amount of Supply. Source: Glassnode

Ethereum Price Ahead of Shanghai Upgrade

Ethereum Shanghai upgrade could increase the trading volume of Ethereum and could likely lead to an ETH price increase. Moreover, the increase in staking ahead of the Shanghai upgrade points to a rise in ETH price amid upgrades.

Ethereum Foundation on Wednesday announced that Shanghai’s Sepolia Shapella upgrade is scheduled for February 28 at 4 AM UTC. The ETH testnet Sepolia will undergo the Shanghai upgrade and allows validators to retrieve their stake from the Beacon Chain to the execution layer.

The event to likely make the Ethereum price volatile as validators remove their staked Ethereum from the chain. Crypto influencer Lark Davis recently warned that withdrawals will cause a significant sell-off in the crypto market and further disrupt the ETH bullish narrative.

Also Read: Crypto Body Takes Action Against US SEC Chair Gary Gensler For Crypto Crackdown

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