The dovish remarks from the Fed Chair are supporting valuations of risk assets, including cryptocurrencies. The shift in sentiment is fuelling gains in Bitcoin and Ethereum, which are benefiting from dollar weakness and rallies across global equity markets.
- Beyond the leading cryptocurrencies, the rally is also “spilling over” into smaller coins, known as altcoins. Chainlink, Uniswap, and Sushi stand out in terms of momentum, although none of them match Ethereum’s current upward drive.
- Historically, the market may have entered an “Ethereum dominance” phase, which in previous bull cycles tended to emerge after months of sustained Bitcoin-led rallies.
- If the current bull market unfolds similarly to 2020–2021, other projects such as Chainlink, Cardano, or Ripple may only begin stronger upward phases once the market starts to gradually take profits in Ethereum.
- Of course, there is no guarantee that the present crypto rally will mirror the previous one. However, for several months we have seen ETH steadily gaining ground over BTC, a dynamic that is increasingly drawing Wall Street’s attention.
ETHEREUM (D1)
The cryptocurrency has endured a difficult week; market uncertainty and capital outflows from speculative assets pushed Ethereum down 13% since Monday. Powell’s speech, however, helped erase most of these losses. Following the conference, ETH surged 9% and is now holding around $4,640. The coin is only 5% away from its all-time high.
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Create account Try a demo Download mobile app Download mobile appTechnical analysis suggests that between June and July, ETH broke out of its previous ascending channel and established a new, steeper one. The market defended the 200-day moving average during consolidation, and the price is now trading above the EMA15, EMA50, EMA100, and EMA200. The final resistance zone lies between $4,866 and the current valuation. On the downside, key support levels stand at $3,944 and $3,351, reinforced by the trend line and the 50-day moving average. Attention should also be given to a demand gap at the lower boundary of the ascending channel, signalling trend strength, as well as the broadening structure of the rally, which suggests heightened volatility ahead.
Source: xStation5
BITCOIN (D1)
The situation looks broadly similar for the world’s largest cryptocurrency. Its valuation had been pressured by concerns over Fed policy and the broader economic outlook, but Powell’s comments allowed Bitcoin to recover a significant portion of its recent losses. However, the price has not shown the same degree of optimism as Ethereum, despite a comparable scale of the prior declines.
On the daily chart, Bitcoin appears to be forming another highly geometric consolidation channel, bounded between $111,844 and $124,464. The market failed to defend the short-term uptrend line, though support from the medium-term trend zone has held. The relatively weaker rebound highlights softer demand compared to Ethereum.
Source: xStation5
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