ETHUSD is now trading at around $2,690. Following a nearly 10% jump in September, the pair has recently entered a consolidation phase, currently moving within a flat range between $2,630 and $2,790.
The Federal Reserve’s (Fed) monetary policy path remains a key factor in the crypto market. Last month, the US central bank raised interest rates to 4.00%. At first, this hawkish decision weighed heavily on risky assets, including Ethereum. However, the September 30 inflation release smoothed the picture, as readings came in softer than expected: the Personal Consumption Expenditures (PCE) index rose by 0.2% month-over-month and 3.00% on an annual basis. So, what does this mean? Slower inflation allows the Fed to hit the brakes on monetary tightening and supports demand for risky assets, such as digital currencies. Despite this positive development, there are some headwinds—most notably, elevated US Treasury yields. Returns on 10-year bonds are now holding above 5.2%, increasing the appeal of debt instruments compared to the crypto market. Thus, the pair’s future dynamic will be determined by the Fed’s policy stance and US note yields.
Let’s take a quick look at the technical setup. After a strong rally in the second half of September, Ethereum has recently taken a breather within the $2,630–$2,790 range. The lower boundary ($2,630) has repeatedly proven to be solid support. Whenever the pair dipped below this threshold, it was bought back immediately, confirming buyers’ vigilance. Currently, ETHUSD is hovering close to the middle area of the channel, though the overall uptrend remains intact. The top level of $2,790—a local peak—could be the next target.
The final recommendation:
— Buy Ethereum at the current price of $2,690, aiming for $2,790 within a month.
— Place Stop Loss at $2,630 to manage risks if the market moves in the opposite direction.
This content is for informational purposes only and is not intended to be investing advice.
