Ethereum experienced a moderate setback after breaking the important $2000 barrier and continued to trade in the green during today’s trading session. The cryptocurrency is driving the relief of the current cryptocurrency market and sees it poised for more gains.
At the time of writing, Ethereum (ETH) is trading at $1,980 with a profit of 6% and 15% over the last 24 hours and 7 days, respectively. Only Solana (SOL) and Cardano (ADA) approached ETH price gains with double-digit profits over the same period.
Trading firm QCP Capital believes that the upward momentum is on the way to expand on the back of positive macroeconomic factors. The cryptocurrency’s rally took off last week when the US published the Consumer Price Index (CPI) for July, a measure of dollar inflation.
The measure was around 8.5% and, as QCP Capital said, “confirms the story of peak inflation.” Thus, market participants expect the Fed to be less aggressive as inflation appears to be heading lower. trading desk He said:
This has led the market to price the Fed more pessimistic, creating an upward momentum that is likely to continue until the upcoming FOMC meeting on September 22nd.
In the coming weeks, there are other macroeconomic events that could negatively affect market participants’ perceptions of the Fed. However, QCP Capital believes that the market will “remain supported regardless”.
As for the price of Ethereum, the bullish narrative is double as there is a tentative date for the mainnet to implement a “merger,” an event that will complete ETH’s transition to a Proof-of-Stake (PoS) consensus. The event is expected to take place from 15-16 September.
This led to an “unprecedented” shift in the crypto options markets, as the total open interest (OI) of ETH contracts outweighed the open interest of Bitcoin (BTC). The former is $8 billion and the latter is $5 billion.
What could become an obstacle to the bullish momentum of Ethereum
The above may indicate that market participants are buying call (buy) options for Ethereum destined for a “merger,” dependent on the success of the event. In the spot market, data from Material Indicators shows that investors with bids ranging from $1,000 to $100,000 have been buying in ETH price action over the past week.
If major investors continue to support Ethereum, the upward momentum may continue, QCP Capital predicts. However, Bitcoin should see more upward pressure to support any long-term bullish price movement, such as NewsBTC previously mentioned.
Additional data provided by Material Indicators is recording weak resistance for the price of ETH, on the lower time frames, north of $2050. If the bulls can push the price beyond those levels, ETH could regain its previous highs and turn critical resistance into support.