Ethereum extended
the losses yesterday following a hot US PPI report but eventually rebounded
strongly as dip-buyers stepped in around key technical levels.
The macro and geopolitical
pictures haven’t improved at all, so the rebound looks to be driven more by overstretched
positioning.
This could limit
the upside unless we get a breakthrough in US-Iran negotiations or the economic
data continues to point towards a strong economy while the Fed remains slow in
addressing inflationary pressures.
Looking ahead, we
have the Flash PMIs, the FOMC, US–Iran negotiations and the US midterm
elections as key catalysts. Deteriorating economic data could increase concerns
about growth, further weighing on risk sentiment and Ethereum.
What could change
the picture completely would be an end to the US–Iran war, as that would ease
inflationary pressures, improve the growth outlook and likely support a broader
recovery in the crypto market.
ETHEREUM TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Ethereumhas rebounded from the 2,360
support and the major trendline as the dip-buyers stepped in to position for a
rally into the 3,400 level. The sellers will need a break below the trendline
to open the door for new lows and target the 1,900 level next.
ETHEREUM TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we
have a downward trendline defining the bearish momentum. We can expect the
sellers to lean on it, with a defined risk above it, to keep targeting a break
below the major upward trendline. The buyers, on the other hand, will want to
see the price breaking higher to increase the bullish bets into new highs, with
the 2,570 level as the first target.
ETHEREUM TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor support around the 2,420 level. If the price gets there, we can
expect the buyers to step in, with a defined risk below it, to keep targeting a
break above the trendline. The sellers, on the other hand, will look for a
break to increase the bearish bets into the major upward trendline. The red
lines define the average daily range for today.
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What about the Crypto King? Could Bitcoin’s rebound extend toward $86,500? After this week’s hotter-than-expected US CPI and market sell-off, BTC recovered from roughly $79,700 to above $82,000 as of October 16, keeping the video’s Bollinger Band scenario worth revisiting. Watch investingLive’s Exness-powered Short for the technical reasoning behind a possible move toward $86,500, framed as a short-term recovery within the range, with an outcome that remains uncertain and requires your own assessment.
This article was written by Giuseppe Dellamotta at investinglive.com.