The second-largest cryptocurrency Ethereum (ETH) extended gains for the second consecutive day, it has rebounded back to above $3,350 on Wednesday. During the last week, Ethereum slips to a fresh 4 month low of $2,930 following the release of minutes from the Federal Reserve Board’s December meeting. The last time ETH dropped below $3,000 was in late September. The minutes indicated the central bank could raise interest rates faster than expected amid tight labor conditions and rising inflation.

ETHUSD Technical Review

Technically the overall momentum remains mixed after the last few weeks sell-off. I expect the pair is likely to see more volatility going forward. In the short term, if the bullish momentum continues the next upside levels to watch $3430 and $3460. A further recovery allows for a push towards $3560 and $3650 serving as additional upside targets. On the flip side, a breakdown through $3190 would negate that bias and suggest a test of the $2980 and $2900 support regions.

In the long term, watch for the important breakout at $3700 and $2900, which will give a larger confirmation of direction in the long term.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.