Ethereum broke out of its month-long trading range on Friday after a CFTC crypto rulemaking submission became public, lifting hopes that US regulators will act without Congress. The move opens the door toward the $3,000 level, while traders also watch potential Iran de-escalation and upcoming US data for further direction.
CFTC filing lifts Ethereum and major cryptocurrencies
Ethereum and other major cryptocurrencies rallied on Friday after a CFTC crypto rulemaking submission from Thursday became public. The filings were submitted for regulatory review after the CLARITY Act failed to advance in the Senate earlier in the week.
The CFTC has effectively signaled 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.
Macro backdrop adds to the case for crypto
Attention is now turning to tomorrow's UN General Assembly, where Trump called a meeting with Gulf leaders to discuss next steps in the war with Iran. The Iranian delegation was also allowed to participate, so a meeting between Trump and Iranian President Pezeshkian could follow.
A de-escalation would likely ease inflation and rate hike concerns, sending oil prices lower and supporting risk sentiment for cryptocurrencies. Economic data matters too: with positioning stretched, even a modest downside surprise in US data could reduce expectations for aggressive rate hikes and give Ethereum an additional boost.
Technical picture points to $3,400 next
On the daily chart, Ethereum finally broke out of its month-long range and extended gains into new highs, with buyers eyeing the resistance zone around $3,400. A move into that zone could draw sellers positioning for a drop into new lows, while a break higher would let buyers press bets toward new record highs.
The 4-hour chart shows a pullback into the resistance-turned-support near $2,560 could attract buyers targeting new highs, while a break below that level could open a drop toward $2,360. On the 1-hour chart, an upward trendline is defining the bullish momentum, with buyers likely to lean on it during pullbacks.
Traders are watching a busy calendar ahead: Wednesday brings the flash US PMIs, and Thursday brings a Trump-Xi meeting, both potential catalysts for the next leg in Ethereum's move.
Source: Investinglive
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