FUNDAMENTAL OVERVIEW
Ethereum’s Glamsterdam upgrade cleared an important
private rehearsal this week ahead of the October 6 Sepolia testnet launch. The
test successfully ran under the new block-building rules, while Nethermind
completed 2,302 performance tests.
Developers also tested a 200 million gas block limit
versus roughly 60 million currently in the test environment. Glamsterdam is
designed to increase Ethereum’s capacity and reduce congestion/fee spikes
through changes including block-level access lists and enshrined
proposer-builder separation.
On the macro side, the Fed delivered a rate hike on
Wednesday as widely expected and projected a less hawkish path for interest
rates than the market was pricing. After the initial overreaction and risk-off,
the market got back to senses and risk assets rallied.
Looking ahead, I would carefully watch
the situation in the Middle East as $100 oil, rate hikes and elevated bond
yields might put more pressure on Trump to end the war. We might be already
entering a de-escalation phase as Trump called a meeting with Gulf leaders on
Tuesday on the sidelines of the UN General Assembly in New York to discuss the
next steps in the war with Iran. Notably, the Iranian delegation will be
allowed to participate.
A de-escalation would send oil prices lower, easing inflation and rate
hikes concerns and improving significantly the general risk sentiment,
ultimately supporting the crypto market.
ETHEREUM TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Ethereumrebounded from the key 2,360
support and it’s now approaching the 2,560 resistance. We can expect the
sellers to step in around the resistance with a defined risk above it to
position for a drop back into the support. The buyers, on the other hand, will
want to see the price breaking higher to increase the bullish bets into the
3,000 handle next.
ETHEREUM TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we can
see more clearly the rangebound price action we’ve been stuck into for
basically an entire month. The market participants will continue to play the
range by buying at support and selling at resistance until we get a breakout on
either side.
ETHEREUM TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor upward trendline defining the bullish momentum. If we get a
pullback, we can expect the buyers to lean on the trendline with a defined risk
below it to keep pushing into new highs targeting a breakout. The sellers, on
the other hand, will look for a break lower to pile in for a drop into the
support next.
UPCOMING CATALYSTS
On Tuesday, we have the Trump
meeting with Gulf leaders and on Wednesday we get the Flash US PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.