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Breaking News: Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

Ethereum Sees Setback After Breaking $2k, But Price Likely to Maintain Upward Trajectory

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
Ethereum price eth ethusdt

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Ethereum has experienced a mild setback after breaking the important barrier at $2,000 and continues to trade in the green over today’s trading session. The cryptocurrency is leading the current crypto market relief and sees poised for further gains.

Related Reading: Lightning Speed: Taro Wants To Abolish Cross-Border Payments, Disrupt The Market

At the time of writing, Ethereum (ETH) trades at $1,980 with a 6% and 15% profit over the last 24 hours and 7 days, respectively. Only Solana (SOL), and Cardano (ADA) come close to ETH’s price gains with double digits profits over the same period.

Ethereum ETH ETHUSDT
ETH’s price with important gains on the 4-hour chart. Source: ETHUSDT Tradingview

Trading firm QCP Capital believes the bullish momentum is on track to extend on the back of positive macro-economic factors. The crypto relief rally took off last week when the U.S. published the Consumer Price Index (CPI) July print, a measure of inflation in the dollar.

The metric stood at around 8.5% and, as QCP Capital said, “confirms the peak inflation narrative”. Thus, market participants expect a less aggressive Federal Reserve (Fed) as inflation appears to be trending down. The trading desk said:

This has led to the market pricing a more dovish Fed, creating bullish momentum that is likely to continue until the next FOMC meeting on 22 September.

In the coming weeks, there are other macro-economic events that could negatively impact market participants’ perceptions about the Fed. However, QCP Capital believes the market will “remain supported regardless”.

For the price of Ethereum, the bullish narrative is double as there is a tentative date for the mainnet implementation of “The Merge”, the event that will complete ETH transition to a Proof-of-Stake (PoS) consensus. The event is expected to take place between September 15 to 16.

This has led to an “unprecedented” shift in the crypto options markets, the total open interest (OI) for ETH contracts has overshadowed Bitcoin (BTC) open interest. The former stands at $8 billion and the latter at $5 billion.

Ethereum ETH ETHUSDT 1
ETH option contracts’ open interest above BTC’s for the first time ever. Source: Skew via QCP Capital on Twitter

What Could Become An Obstacle For Ethereum’s Bullish Momentum

The above might suggest market participants are buying call (buy) options for Ethereum heading into “The Merge”, counting on the event to be successful. In the spot market, data from Material Indicators shows that investors with bid orders from $1,000 to $100,000 have been buying into ETH’s price action over the last week.

If large investors continue to support Ethereum, the bullish momentum could sustain, as QCP Capital expects. However, Bitcoin should see more upward pressure to support any long-term bullish price action, as NewsBTC previously reported.

Ethereum ETH ETHUSDT MI 1
ETH investors with buy orders from $1,000 to $100,000 support bullish momentum over the past week. Source: Material Indicators
Related Reading: Decentraland Consolidates Near $1.05 – Can MANA Attract Buyers Now?

Additional data provided by Material Indicators records thin resistance for ETH’s price, on low timeframes, north of $2,050. If bulls can push the price beyond those levels, ETH could reclaim its previous highs and turn critical resistance into support.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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