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Bitcoin and Ethereum Another Blood Bath Weekend. Fed Interest Rate Decision Will be the Next Key

Written by Moneypig Trading Inc.


$ETH sells off after the Ethereum Merge


Based on Ethereum.org (here), Ethereum Merge marks the end of proof-of-work for Ethereum and the full transition to proof-of-stake. The two major advantages are:

  • This sets the stage for future scaling upgrades including sharding.

  • The Merge will reduce Ethereum’s energy consumption by ~99.95%.

Therefore this event has been marked as the primary catalyst of Ethereum ($ETH). We can see from the following weekly chart below where $ETH has been pushed up more than 100% to $2,028 from the year low $994, but quickly pulled back due to the elevated USD and Treasury yield ($TNX), which often put downward pressure on growth assets.


Sadly, after the Ethereum Merge, $ETH went down further this weekend by -10%. The current daily chart is a bear flag to the downside.



$ETH and $TNX Daily charts


Technical Analysis on $ETH this week


$ETH Downside: 1257, 994 this week

$ETH Upside: 1423, 1498, 1541, 1604 this week



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Technical Analysis on Bitcoin $BTC and Bitcoin Miner $MSTR this week

$BTC and $MSTR weekly charts


$BTC Downside: 17049, 14742, 11008 this week

$BTC Upside:19764, 20914, 21995 this week

$MSTR Downside: 184 this week

$MSTR Upside: 227.1, 235.83 this week


Fed Rate Hike is the Key


Fed will announce its interest rate decision in the Sept 2022 FOMC. Since the August inflation number is higher than expected, it is well expected that they will increase the interest rate by 75 bps. However, the key is to watch what Powell says in the FAQ. If he hints more aggressive rate hike will come during the Nov and Dec FOMC, the crypto and stock markets could have another aggressive sell-off and vice versa.


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Thank you for reading and have a great day!


Moneypig Trading team


Just a quick disclaimer: Moneypig Trading (https://www.moneypigtrading.com/) is not a financial advisor. Please invest at your own risk.

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