Ethereum (ETH) at a crossroads: $2,000 vs $3,000...What's its fate after September 15?

▲ Ethereum (ETH)/AI-generated image

Ethereum (ETH) stands at a major crossroads between $2,000 and $3,000, ahead of the US cryptocurrency market structure bill and the Federal Reserve's (Fed) decision.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, identified the procedural vote on the US crypto market structure bill on September 15 (local time) as a key variable in a video uploaded on September 14. Passing a procedural vote does not mean final approval. However, he assessed that it could be a significant signal that greatly increases the possibility of the bill passing.

The last-minute sticking point is an ethics clause related to former US President Donald Trump. Coinbase CEO Brian Armstrong stated that the White House proposed strong ethics regulations. The Democratic Party reportedly demanded additional measures, including asset divestment. Armstrong called the negotiation “one of the last issues that needs to be resolved.”

Gambardello also paid attention to recent political moves. After Trump discussed ethics regulations with his aides on Friday, Patrick Witt, an official from the President's Digital Asset Advisory Committee, posted an article to the effect that it was not a good day to be pessimistic about the bill. Gambardello viewed this trend as a positive sign. However, he drew a line, stating that his interpretation was speculative and not grounds to conclude that the bill would pass.

Analysis suggests that the macroeconomic environment of the altcoin market resembles that of 2020. In the cryptocurrency market, excluding Bitcoin (BTC) and Ethereum, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are testing long-term reversal signals. Altcoin dominance is facing resistance at the 20-month moving average. Gambardello assessed, “The macroeconomic environment for cryptocurrencies has never looked this good since 2020,” while emphasizing that there is no guarantee that past trends will repeat.

Short-term volatility could even increase further. Gambardello presented a scenario where Ethereum could correct to around $2,000 ahead of the Fed's decision and the bill's vote. Conversely, he also mentioned the possibility of moving towards $3,000 if unexpected results occur, such as the Fed not raising interest rates or the bill passing the procedural vote. He prefaced his remarks with “much speculation” and emphasized that risk management should be prioritized in either direction.

[Article Key Summary]

-Dan Gambardello identified the procedural vote on the US crypto market structure bill on September 15 as this week's key variable.

-He presented an analysis that the long-term technical trend of the altcoin market is similar to 2020, when economic expansion began.

-For Ethereum, scenarios of $2,000 in case of a short-term shock and $3,000 in case of eased policy uncertainty were discussed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*