As investors reacted to the Federal Reserve's most recent interest rate announcement, the price of ethereum went sideways on Thursday. It had been trading at $1,760 for the previous few days. This price is roughly 52% higher than the year's lowest point.

The effects of a Fed decision

The Federal Reserve's most recent interest rate decision served as Ethereum's primary motivator on Thursday. The Federal Reserve chose to increase interest rates on Wednesday, as I had anticipated here, by 0.25%, raising the main cash rate to 5%, the highest level in more than ten years.

The bank initially stated that some of its officials supported stopping the cycle of hikes while they examine the effects of the most recent rises. That sentence was perceived as being dovish. Jerome Powell cautioned in his news conference that the bank still had more room to raise interest rates in the upcoming months.

Following the statement, stocks and cryptocurrencies initially increased before losing earlier gains. Futures for the stock market indicate that the Dow Jones and S&P 500 index will open flat.

The US dollar index has also remained in a bearish trend for the past few days. From a peak of $115 last year, it has fallen to a low of $102. Ethereum and the US dollar typically move in opposite directions. On the other side, $29,000 proved to be a barrier for Bitcoin.

Looking ahead, the performance of extremely volatile bank equities like PacWest and First Republic Bank will be the next major trigger for Ethereum. Due to investors' attention on their withdrawals, the two banks have been extremely volatile. Since they are regarded as safe havens, Ethereum and Bitcoin typically perform higher while banking issues persist.

The price of ETH has recently been in a slow bullish trend, as seen on the daily chart. The highest point was reached on February 15 at $1,771.36, which allowed it to surpass the critical resistance threshold. The 50-day and 100-day exponential moving averages also support it (EMA).

As a result, I am increasing my Ethereum price prediction to $2,000, which is almost 15% higher than the current price. This trade will have a $1,600 stop-loss.