Ethereum (CRYPTO: ETH) was outpacing Bitcoin (CRYPTO: BTC) during Wednesday’s 24-hour trading session, popping up almost 5% at one point.

A potential rally over the high-of-day at the $1,272 mark looked promising before the Federal Open Market Committee released its monthly meeting minutes at 2 p.m., which brought an initial high level of bearish volatility.

While the Fed said that bringing down inflation remains its top priority, the central bank may continue to soften its tightening measures to avoid a recession.

Although the Fed’s language was moderately bullish, the S&P 500 failed to break up or down from Tuesday’s trading range. Traders and investors may be sitting on the sidelines until the Labor Department releases initial jobless claims on Thursday at 8:30 a.m.

Anaysts estimate the number will come in at 223,000 for the week ending Dec. 31.

The crypto sector has traded in tandem with the general stock market recently, but Ethereum has shown relative strength, gaining over 10% since Dec. 19. In contrast, the S&P 500 has declined about 0.3% since that date and Bitcoin has gained a mere 0.5%.

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The Ethereum Chart: While the S&P 500 and Bitcoin have been trading mostly sideways, Ethereum reversed into an uptrend on Dec. 19 and has made a consistent series of higher highs and higher lows. Ethereum’s most recent higher high was printed on Dec. 22 at $1,238.76 and the most recent higher low was formed at the $1,180.44 mark on Dec. 30.

On Wednesday, Ethereum created another high, but traders will need to see the price action that takes place on Thursday to know whether the next higher high has occurred. If Ethereum closes the trading session with a long upper wick, the crypto may trade lower on Thursday.

The second most likely scenario is that Ethereum forms an inside bar pattern on Thursday, with all of the price action taking place within Wednesday’s range. If that occurs, the pattern leans bullish because the crypto was trading higher prior to forming the inside bar.

Bearish traders want to see big bearish pressure come in and break Ethereum down under $1,180, which would negate the uptrend.

Ethereum has resistance above at $1,308.89 and $1,421.80 and support below at $1,231.28 and $1,081.

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