Ethereum tries to gather momentum after the CPI report

US equities surged again after the CPI release, with all major indices — S&P 500, Nasdaq, and Dow Jones — notching fresh all-time highs.

The US dollar has been struggling with rate markets are now progressively betting ofn a 50 bps FOMC cut, though expectations remain fluid.

Indeed, the immediate post-CPI reactions took some of that pricing back, before re-upping the odds just above 10%.

Players will now expect hints from journalists such as Wall Street Journal's Timiraos, the usual suspect for pre-FOMC FED insights.

However, cryptocurrencies are lagging this risk-on rally.

While Bitcoin rebounded since its past week $108,000 lows, Ethereum is still trying to regain upside momentum.

The broader altcoin and crypto complex has yet to reflect the same strength seen in equities and other risk assets since the morning session.

With traders now turning to next week’s FOMC decision, crypto markets await a progressing technical outlook.

Let's peak at the current Crypto Market picture before diving in a multi-timeframe Ethereum analysis.

Read More:

• US Indices open higher after the US CPI report – Dow Jones and S&P 500 technical outlook
• A hesistant FX Market after the as-expected September CPI release – Technical levels

The Crypto picture is very mixed overall – watch other risk assets and market leaders (Solana in today's session) to spot how flows evolve.

Since our last analysis of the second largest crypto, prices have consolidated above the 4,200 to 4,500 momentum pivot.

Momentum has now decreased from extremely overbought levels back to right above neutral which allows for further potential action to develop.

The combination of both price and momentum consolidation provides a floor for higher volatility in the upcoming weeks.

Despite the lack of momentum, if sentiment stays positive as it is, ETH has formed a floor on which to bounce on.

The balance to this potential outcome however would be a failure to rebound from here which can lead to a lower interest in cryptos, which would be detrimental for the digital asset Market.

Momentum attracts momentum!

Looking closer highlights how strong the ongoing range is.

Buyers will have to maintain the upward trendline as a few breakout attempts got rejected during the ongoing session.

Consolidating above $4,400 could provide the necessary boost for an upside breakout, but will require a concrete breakout above the consolidation highs (around the $4,500 level).

Levels of interest for ETH trading:

Support Levels:

• Consolidation Support 4,250 to 4,280
• $4,200 to $4,500 consolidation Zone (getting tested)
• $4,000 to $4,095 Main Long-run Pivot
• $3,500 Main Support Zone

Resistance Levels:

• Consolidation resistance $4,480 to $4,500
• $4,950 Current new All-time highs
• $4,700 to $4,950 All-time high resistance zone
• Potential main resistance $5,230 Fibonacci extension

Crypto market depth is currently stalling as translated by the most recent slowdown in the ETH/BTC ratio, however with the correction currently stalling, it will be time for crypto aficionados to flex their muscles to lift crypto market sentiment.

A rise in the crypto ratio is typically favorable for the Market and with ETH's most recent top, other altcoins are looking at their big brother to get started again.

On the other hand, Solana is still powering through. Keep an eye on the ETH/SOL relative performance.

A potential rally from here due to the ongoing consolidation may change market dynamics, therefore keep a close eye on the general crypto market sentiment.

Safe Trades!