Ethereum Rangebound as Macro Headwinds Persist
Ethereum has been stuck in a range for over a week due to negative macro conditions that are capping further gains. The Ethereum Foundation announced on September 28 that the Glamsterdam upgrade's first public test on Sepolia is scheduled for October 6. This upgrade aims to increase the network's capacity and scalability, which could lead to additional demand for Ethereum blockspace and ultimately greater economic value.
On the macro side, the US and Iran are still engaged in negotiations to amend Iran's recent proposal to reopen the Strait of Hormuz within seven days under certain conditions. The disagreement now reportedly centers on the sequencing of the steps rather than the components of the plan. Traders will keep a close eye on the headlines for more information.
Some support came from Fed's Williams, who said he didn't see any urgency after the September hike and that one further hike was likely if the economy performed as expected. His comments triggered a dovish repricing, and the odds for a rate hike in October fell from 70% to 45%. However, the US Core PCE surprised to the downside yesterday, lowering further October hike probabilities.
The focus will remain mainly on US-Iran developments, with a breakthrough potentially positive for Ethereum as aggressive Fed rate hike bets would likely be pared back. A negative outcome or prolonged stalemate, on the other hand, will continue to keep a lid on risk sentiment and the crypto market.