Ethereum Poised for Breakout as Wall Street Hits Record Highs off Lower-Than-Expected Inflation
Ethereum (ETH) is holding firm near the $4,600 region, with bullish momentum dominating the daily chart as Wall Street celebrated a landmark session on Tuesday.
The S&P 500 closed above 6,400 for the first time ever, joining the Nasdaq Composite in record territory amid a broad rally sparked by fresh U.S. inflation data.
S&P 500 price chart (Source: Google Finance)
The stock market surge came after the Bureau of Labor Statistics reported that core inflation rose 3.1% annually in July, up from June’s 2.9%.
The headline CPI matched June’s 2.7% pace, coming in slightly softer than economists’ expectations of 2.8%. The data boosted expectations for a Federal Reserve rate cut in September, with CME Group’s FedWatch Tool showing around 94% of traders now betting on such a move.
The Dow Jones Industrial Average climbed nearly 500 points (+1.1%), the S&P 500 gained 1.1%, and the tech-heavy Nasdaq rose 1.4%, all closing at fresh highs. The small-cap Russell 2000 outperformed with a nearly 3% jump, reflecting broader optimism across risk assets — a sentiment that has also flowed into cryptocurrency markets.
Dow Jones Industrial Average Index heat map (Source: TradingView)
Ethereum Technical Picture Remains Strong
Ethereum’s daily chart continues to display robust bullish structure. The recent breakout from the $4,200 region toward $4,600 has been supported by accelerating moving averages, with the faster 9-day EMA comfortably above the 20-day EMA — signaling that buying pressure is outpacing selling activity.
The MACD remains in bullish alignment, while the RSI’s position in overbought territory points to strong momentum, though it also raises the possibility of a short-term cooling period.
Daily chart for WETH/USD (Source: GeckoTerminal)
On the downside, key supports rest at $3,747, $3,628, and $3,469, representing potential entry zones for long positions should a healthy pullback occur. Upside potential remains intact if Ethereum can clear its current resistance cluster, where selling pressure has repeatedly capped gains.
Ethereum Order Book Insights and Short-Term Levels
Order book data shows significant liquidity shaping ETH’s immediate outlook. On the bid side, strong walls are positioned at $4,623 (128 units, ≈$592K), $4,608 (82 units, ≈$377K), and $4,620 (77 units, ≈$358K), suggesting buyers are prepared to defend even minor dips.
On the ask side, resistance is concentrated at $4,624.36 (165 units, ≈$764K), $4,626.99 (100 units, ≈$463K), and $4,635 (93 units, ≈$431K). Clearing these levels could pave the way for incremental gains of up to 0.23%, potentially opening a path toward $4,650 and beyond.
Macro Tailwinds Align With Crypto Momentum
The record-setting performance in equities, combined with rising rate-cut expectations, is creating a supportive macro backdrop for risk assets like Ethereum. The rally in both traditional and digital markets underscores investor appetite for growth-oriented plays as economic data fuels optimism that monetary policy will soon loosen.
For bullish traders, dips toward $4,600 or deeper retracements toward the $3,747 support could offer compelling entry points if the broader trend remains intact. Conversely, short-term traders looking to fade overbought conditions may watch for rejections in the $4,626–$4,635 resistance band, especially if momentum indicators begin to roll over.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
