The crypto winter is thawing today and ethereum is the big winner, climbing 8% in its best day in months. It's up $109 to $1460, which is the best level since September 17.
The jump comes after a period of malaise that came after the 'merge' pump-and-dump. It was constructive how ethereum was able to trade flat in the past month and stay well-above the summer lows desptie weakness in equities and high USD volatility. That set up today's big gain.
What's next?
All the correlations in markets have gone to 1 in the past few months. Crypto right now is the same bet on a Fed pivot as equities and it's not entirely without merit. US data is beginning to roll over and the Fed pushed back against a terminal rate above 5% last week. The FOMC decision on November 2 will write the next chapter.
For now, ethereum bulls will want to stay comfortably above $1400. Today's highs and $1500 are going to offer some resistance but there's no rush to get there, it would be healthier to see some consolidation before more gains.
Overall sentiment in crypto is as low as it's been in years and that's a contrarian signal. The sector has been written off before and that's usually the time to buy. There is certainly a large cohort that's been hoping to buy ETH below $1000 and BTC below $10,000 but when so many people are circling the wagons, levels like that rarely arrive (though they often get much closer than what we've seen so far).
