Ethereum finally breaks out of the month-long range as CFTC moves forward without Congress

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Ethereum and other major cryptocurrencies rallied on Friday after a <a href="https://crypto.news/cftc-submits-crypto-market-framework-for-white-house-review/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">CFTC crypto rulemaking submission on Thursday became public</a>.The filings were submitted for regulatory review after the CLARITY Act failed to advance in the Senate earlier in the week. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">The CFTC has effectively signalled that it intends to move forward with a crypto market framework using its existing authority rather than waiting for Congress. Following the news, Ethereum broke out of its month-long range, opening the door for a rally into the $3,000 level.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">On the macro side, the market’s focus is now on tomorrow’s UN General Assembly, as Trump called a meeting with Gulf leaders on the sidelines to discuss the next steps in the war with Iran. The Iranian delegation was also allowed to participate in the Assembly, so there will likely be a meeting between Trump and Iranian President Pezeshkian.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Keep in mind that a de-escalation would send oil prices lower, further easing inflation and rate hike concerns and ultimately support risk sentiment and cryptocurrencies.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Economic data will also be important given the current market’s pricing. When positioning and market expectations become stretched, even a modest shift in the data can trigger a significant reversal. If US data starts surprising to the downside, expectations for aggressive rate hikes will likely be reduced, giving Ethereum an additional boost.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/ETHUSD/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Ethereum</a>finally broke out of the month-long range and extended the gains into new highs. The natural target for the buyers should be the resistance zone around the 3,400 level. If we get there, we can expect the sellers to step in with a defined risk above the resistance to position for a drop into new lows. The buyers, on the other hand, will look for a break higher to increase the bullish bets into new record highs.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, we can see more clearly the breakout of the range and the retest before another leg higher. If we get another pullback into the resistance-turned-support around the 2,560 level, we can expect the buyers to step in with a defined risk below the support to position for a rally into new highs. The sellers, on the other hand, will want to see the price falling back below the support to pile in for a drop into the 2,360 level next. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, we have an 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. The sellers, on the other hand, will look for a break lower to extend the pullback into the 2,560 support. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Tomorrow</a>, we have Trump meeting with Gulf leaders and potentially with Iran’s President at the UN General Assembly. On Wednesday, we get the Flash US PMIs. On Thursday, we have the Trump-Xi meeting.</p> This article was written by Giuseppe Dellamotta at investinglive.com.