FUNDAMENTAL OVERVIEW
Ethereum has
come under some pressure recently as US-Iran tensions dominated the price
action. The negative sentiment started last Wednesday when
Trump poured cold water on expectations of an earlier end to
the Iran war after he repeated that the US would make a deal with Tehran after
the November elections.
Heading into the weekend though, the hopes for a
US-Iran deal returned after Iran sent a proposal to reopen the Strait of Hormuz
within seven days on certain conditions. Unfortunately, Trump rejected the proposal on Saturday and told reporters that he expected
to resume bombing Iran after the midterms. That has kept a lid on the crypto market.
Yesterday, we
started to get some positive headlines during the American session pointing to
possible US concessions. According to Axios, Trump reportedly offered Iran sanctions relief and
access to frozen funds in exchange for progress on nuclear program, although
the US President later denied such reports.
He did confirm
though that the American and Iranian negotiators are engaged in talks through
mediators. Iranian Foreign Minister Araghchi said he expected a formal answer today
to Tehran’s proposal to reopen the Strait of Hormuz.
With the lack of Ethereum-specific catalysts on
the horizon, the focus will remain on the Middle East and the Fed. A
breakthrough would be positive for Ethereum as the aggressive rate hike bets
will likely get pared back. A negative outcome, on the other hand, will likely
continue to weigh on the cryptocurrency.
ETHEREUM TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Ethereumis consolidating near the
major upward trendline. If the price gets there, we can expect the buyers to
lean on the trendline, with a defined risk below it, to position for a rally
into the 3,000 level. The sellers, on the other hand, will want to see the
price breaking lower to pile in for a drop into the 2,360 level next.
ETHEREUM TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have
a resistance zone around the 2,720 level where the price got rejected from
several times in the past days. The sellers will likely continue to step in
around the resistance, with a defined risk above it, to keep targeting the
major trendline. The buyers, on the other hand, will look for a break higher to
pile in for a rally into the 3,000 level next.
ETHEREUM TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the sellers will have a better risk to reward setup
around the resistance and on the break of the trendline, while the buyers will look
for a rejection around the trendline or a break above the resistance to
position for new highs.
UPCOMING CATALYSTS
Today, we get the US
Consumer Confidence report and the US Job Openings data. Tomorrow, we have the
US ADP and the US PCE price index. On Thursday, we get the US ISM Manufacturing
PMI and the latest US Jobless Claims figures. On Friday, we conclude the week
with the US NFP report. The focus, though, will remain on US-Iran developments.
This article was written by Giuseppe Dellamotta at investinglive.com.