Daily News | Key Levels Halt BTC and ETH's Rise Ahead of FOMC Meeting, Ethereum Zhejiang Update Going Live Today

2023-02-01, 02:00

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto Daily Digest: FOMC Meeting Looms as Risk-Averse Buyers Struggle to Push BTC and ETH Past Key Levels

Good morning, fellow traders. It’s going to be yet another great day. Let’s get after it relentlessly.

As of Wednesday morning, Asian stocks are set to rise after US stocks were boosted by lower than expected wage costs and a cooling housing market, but decreased consumer confidence.

The Fed is expected to announce a 25 basis point interest rate increase and investors will closely watch Fed Chair Jerome Powell's comments for hints of a pause in the tightening cycle. Meanwhile, Q4 US earnings reports were mixed, with some companies exceeding profit estimates (automobiles, oil sector) and others falling short (fast food & construction sector).

The cryptocurrency sector followed the optimism from Wall Street with [Bitcoin](https://www.gate.io/trade/BTC_USDT) and Ether rising 1.36% and 1.15%, respectively. However, both tokens have been struggling to move past 23,800 and 1,660, respectively, for nearly two weeks, indicating buyers’ risk-averse attitude after experiencing the explosive growth of the first half of January. Meanwhile, Dogecoin (DOGE) saw a massive rally of 8.8% in a single day, beating all of the top 20 coins.

Zooming out, the crypto volatility index, or CVI for short, stands at 63 and has been steadily declining since Jan. 15 from a height of 78. Any number within 0-85 is considered low volatility. On the other hand, the total crypto market cap, per tradingview data, stands at $1.003T, down from a height of $1.041T three days ago, implying we’re holding above the $1T mark nicely despite macro uncertainties.

With FOMC meeting due later today and NFP jobs report coming hot on Friday, this week’s crypto performance will heavily rely on economic factors. Traders beware.

## Topic of the Day: Ethereum Testnet Zhejiang Goes Live Today

The Zhejiang staking testnet for Ethereum is set to launch today, offering a preview of the withdrawal process and functionality after the Shanghai upgrade.

The testnet will go live at 10 a.m. EST on Wednesday, but won’t initially provide users with the ability to try out withdrawal features that will be available in the Shanghai and Capella testnets six days later. Instead, users will be able to deposit to validators and experience the user interface.

Ethereum Developer Barnabas Busa tweeted that the developer operations team behind the testnet will make any necessary adjustments for a better experience. The Shanghai hard fork for Ethereum is eagerly awaited as it will enable ether stakers to withdraw their balances for the first time since the Merge upgrade.

Selini Capital CIO Jordi Alexander noted on Twitter that the event is being closely watched by ether traders as Ether staking is expected to surge after the Shanghai upgrade.

## Ether (ETH) $1,582 (-0.2%) - Bullish Outlook

**Overview:**

- ***Closest daily support zone: 1,545 - 1,498***
- ***Closest daily resistance zone: 1,658 - 1,693***
- ***Key Level: 1,428 (Monthly High of Jan. 2018)***

![](https://gimg2.gateimg.com/image/article/1675216780Untitled0201.png)

ETH has entered a range-bound period [1,510 - 1,660] since Jan. 18, meaning bulls have been struggling to push it higher for at least 10 days. This range is situated between two trendlines, and combined with the RSI outlook which is steadily declining from overbought area, indicates an imminent breakout is about the happen. If we’re able to break 1,660, ETH is headed towards 1,945. On the other hand, if we break 1,510 (near 23.6% Fibonacci Retracement level), ETH should find support above 1,353 (61.8% Fibonacci Retracement level.)

**Daily Resistance zones**

1. 1,658 - 1,693
2. 1,711 - 1,765
3. 1,775 - 1,889

**Daily Support zones**

1. 1,545 - 1,498
2. 1,463 - 1,416
3. 1,372 - 1,313

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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