Ethereum stalled near $2,800 and pulled back into a new upward trendline after President Trump repeated that the US would only strike a deal with Iran after the November elections, denting risk sentiment. The pullback follows a week of rallying driven by broad crypto momentum rather than an Ethereum-specific catalyst, and traders now watch whether the $2,560 support holds.
Ethereum stalled around the $2,800 level after a week-long rally that lacked a major catalyst specific to the token. The advance instead ran on broad crypto momentum and short-covering.
Trump's Iran remarks cool risk sentiment
Falling oil prices and hopes of a US-Iran de-escalation had supported risk assets including Ethereum. But Trump repeated that the US would make a deal with Iran only after the November elections, and general risk sentiment started to deteriorate after that.
If the de-escalation continues and markets sense an earlier end to the conflict, oil prices could keep drifting lower and support risk assets like cryptocurrencies. Conversely, a failure in US-Iran talks and renewed escalation could push crude oil higher and weigh on Ethereum.
Regulatory filing fueled last week's rally
Most cryptocurrencies had rallied on Friday after a CFTC crypto rulemaking submission became public the day before. The filing was submitted for regulatory review after the CLARITY Act failed to advance in the Senate.
The CFTC signaled it intends to move forward with a crypto market framework using its existing authority rather than waiting on Congress. The breakout of a month-long trading range also contributed to the bullish momentum through broad short-covering.
Key levels to watch
On the daily chart, Ethereum's new upward trendline could act as confluence with the 2,560 support level. A pullback into that support could draw buyers positioning for a rally toward 3,000. Sellers, on the other hand, want a break below the trendline to open a drop toward 2,360 next.
An upward trendline on the four-hour chart defines the recent bullish momentum, with buyers likely to lean on it to keep pushing into new highs. On the one-hour chart, a minor downward trendline defines the current pullback, with sellers looking to lean on it and buyers looking for a break higher to extend bets toward 3,000.
Traders are also watching the Flash US PMIs due today and tomorrow's Trump-Xi meeting, though the focus remains on US-Iran developments.
Source: Investinglive
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