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Ethereum, the second-largest cryptocurrency by market capitalization, is up 2.3% in the last 24 hours to $4,430, extending its recovery since Sept. 7.
The broader crypto market is largely trading in green as investors await key inflation data, with the August consumer price index set to be released today, Thursday.
The producer price index was released Wednesday and saw an unexpected drop, raising optimism of a potential rate cut at the upcoming Fed meeting scheduled for Sept. 16 and 17.
A rate cut would benefit risk assets such as cryptocurrencies, with markets now pricing in a potential September interest rate cut.
Spot Bitcoin and Ethereum ETFs saw a combined $928 million in net inflows yesterday. Ethereum ETFs raked in $171.5 million, with Ethereum funds ETHA and FETH seeing increased demand.
Big move coming?
Ethereum price momentum stalled shortly after reaching an all-time high of $4,955 on Aug. 24. While optimism remains in the markets as to a potential rate cut, which would be bullish for cryptocurrencies, technical indicators such as the Bollinger Bands are suggesting that a major move might be on the horizon for Ethereum.
Since Aug. 30, Ethereum has consolidated in a range between $4,209 and $4,498. According to Ali, a crypto analyst, a major move might be expected for Ethereum as the Bollinger Bands tighten.
While tightening Bollinger Bands may signal less volatility, market analysts often consider this a precursor to major price moves or breakouts. Traders watch Bollinger Band squeezes closely since they suggest the market might be building energy for a major move. The longer the squeeze, the stronger the subsequent breakout is expected to be.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team