2 key Ethereum price metrics suggest traders will struggle to hold the $2K support level

cointelegraph.com:

Ether (ETH) price has been trying to establish an ascending channel since the May 12 market-wide crash that sent its price to $1,790. Currently, the altcoin’s support stands at $2,000, but the high correlation to traditional markets is causing traders to be highly skeptical s cryptocurrency market recovery. 

To date, the Federal Reserve continues to dictate the markets’ performance and uncertainty has been the prevailing sentiment because the central banks of major economies are trying to tame inflation. Considering that the correlation between crypto markets and the S&P 500 index has been above 0.85 since March 29, traders are likely less inclined to bet on Ether decoupling from wider markets anytime soon.

Currently, the correlation metric ranges from negative 1, meaning select markets move in opposite directions to a positive 1, a perfect and symmetrical movement. Meanwhile, zero would show disparity or a lack of relationship between the two assets.

U.S. Federal Reserve Chairman Jerome Powell emphasized on May 17 his resolve to get inflation down by raising interest rates until prices start falling back toward a "healthy level." Still, Powell cautioned that the FED tightening movement could impact the unemployment rate.

So from one side, the traditional markets were pleased to be reassured that the monetary authority plans a "soft landing," but that doesn't reduce the unintended consequences of achieving "price stability."

Further pressuring Ether's price was a document published on May 16 by the U.S. Congressional Research Service (CRS) that analyzes the recent TerraUSD (UST) debacle. The legislative agency that supports the United States Congress noted that the stablecoin industry is not "adequately regulated."

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