FUNDAMENTAL OVERVIEW
Ethereum’s recent
price action has been driven mainly by macro and geopolitical developments,
particularly movements in US Treasury yields, the US dollar and overall risk
sentiment.
US-Iran escalation
risks triggered a broad crypto market selloff but some of the losses were
eventually pared back after Trump ruled out strikes on Iran before the November
elections. The two sides are still engaged in negotiations to reopen the Strait
of Hormuz.
Looking ahead, falling
Treasury yields and a weaker dollar could support prices in the short term but
those moves will need to have a fundamental backing. Therefore, the focus will
remain on US-Iran developments and the US CPI report due on Wednesday.
A breakthrough in
negotiations would support Ethereum on easing inflation and rate hike concerns,
while a renewed escalation would likely trigger another selloff. On the US CPI front,
a higher than expected core reading could put a rate hike in October back on
the table and weigh on the crypto market. A soft report, on the other hand, will
likely give Ether a boost on falling Treasury yields and US dollar.
ETHEREUM TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Ethereum broke below the major upward
trendline and extended the losses as the sellers piled in to target a drop into
the next major trendline. If the price gets there, we can expect the buyers to
step in, with a defined risk below the trendline, to position for a rally into
the 3,400 level. The sellers, on the other hand, will look for a break below
the trendline to increase the bearish bets into the 1,900 level next.
ETHEREUM TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we
have a resistance zone around the 2,630 level where we can also find a downward
trendline for confluence. If the price gets there, we can expect the sellers to
step in, with a defined risk above the resistance, to position for a drop into the
major upward trendline. The buyers, on the other hand, will look for a break
higher to increase the bullish bets into the 3,400 level next, with the 3,000
level as the first target.
ETHEREUM TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we have
a minor upward trendline defining the current pullback. The buyers will likely lean
on the trendline, with a defined risk below it, to keep pushing into the 2,630
resistance. The sellers, on the other hand, will want to see the price breaking
lower to pile in for a drop into the major upward trendline. The red lines
define the average daily range for today.
UPCOMING CATALYSTS
On
Wednesday we have the US CPI report. On Thursday, we get the US PPI, the US
Retail Sales and the latest US Jobless Claims figures.
This article was written by Giuseppe Dellamotta at investinglive.com.
