Crypto Market Review, September 2

Ahead of the merger expected on September 15, Ethereum is showing a local price increase, resulting in a push to the $1,620 price level, which usually serves as a key level for the second largest cryptocurrency, as it may rally back to the values ​​we then on August 14.

Over the past five days, the second largest cryptocurrency has gained more than 15% in value and is now consolidating with its 50-day moving average. According to declining volume profiles, it may hit the brakes for now or even reverse.

Another reason behind the declining volume may be related to the end of the trading week and historically low trading volume in weekend trading sessions. Technically, Ethereum is moving in the local uptrend despite the 30% correction we saw recently.

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A 24% recovery would be possible if bulls push Ethereum above the aforementioned moving average, leading to a return to the local top of $2000. The only fundamental driver for Ethereum would be the upcoming Merge update that should happen between September 13th and September 15th.

CPI data and FOMC meeting to come

In addition to the variety of crypto-related events we mentioned in our recent article, the two most important events for the market will occur in the middle and end of this month.

According to Fed Chairman Powell’s latest live stream, the Fed will most likely aim for another significant rate hike and may even extend the cycle until the inflation target and balance in the US economy is reached.

Fortunately, the recent price action of Bitcoin and other major cryptocurrencies was most likely caused by the pricing of the upcoming interest rate hike and potentially negative CPI data. On the day of the previous inflation data release, the cryptocurrency market suddenly surged as the release numbers came in below expectations.

The short-term rally helped Ethereum and Bitcoin climb to their local highs of $2,000 and $25,000 respectively.

Altcoin market remains anemic

Despite some interesting setups and movements we highlighted yesterday, the most notable representatives of the altcoin market – such as XRP, ADA and AAVE – are following the performance of Bitcoin and Ethereum.

XRP’s problematic position in the market has not changed and the asset is still moving below the trend line we mentioned in our market review. The lack of buying power and trading volume in general shows that the asset will most likely remain under the radar for quite some time.

The biggest growth on the market in the last 24 hours has been shown by Celsius with an almost 25% price increase. Considering the problems surrounding the company, the growth in the market is purely speculative and should not be considered a significant change in the company’s position.