The crypto market is experiencing a turbulent week, influenced by mixed US macroeconomic data.
Amidst this, Ethereum has been particularly reactive to the news.
In this article, we will deep-dive into the latest Ethereum price trends and discover whether a new layer-2 could be the hottest buy during this October’s market dip.
Impact of Recent US Macroeconomic Data on Crypto Markets
At the heart of price action this week lays US macroeconomic data, namely, Yesterday’s release of September’s FOMC minutes (Which did little to appease investors) and now today, the release of the last CPI figures.
The Fed's worst nightmare has begun:
1. Core CPI inflation rises to 3.3%, the first increase since March 2023
2. 258,000 people filed for unemployment this week, above expectations of 230,000
Once the September jobs report is revised sharply lower, it will reveal the Fed's…— The Kobeissi Letter (@KobeissiLetter) October 10, 2024
Coming in at +0.2% (much higher than anticipated), the consumer price index reading in the US has surprised investors with an uptick, defying expectations of a continued decline following Powell’s September rate cut.
the FBI is literally launching tokens on Ethereum L1, and you’re bearish
— DCinvestor (@iamDCinvestor) October 9, 2024
This recent macroeconomic data has broadly spooked markets, particularly after the S&P 500 reached all-time highs earlier this week.
Amidst this downturn, Ethereum has been notably impacted, with its performance in USD underwhelming compared to other assets throughout the year.
Ethereum Price Analysis: How is ETH USD Shaping Up on The Long-Time Frame?
As the CPI data rocks the market, Ethereum is currently trading at a market price of $2,381 (Representing a 24-hour change of +0.46%).
This comes amid weeks of tumultuous price action for ETH USD, which has seen a significant weakening of technical structure since rejection from the upper trendline at $4,006 on May 27.
Rejection here has triggered a high-time frame downtrend, which has seen Ethereum price bleed -out 40% over the following 4 months.
The situation worsened on August 5, when a tumbling 20DMA crashed through the 200DMA, creating a troubling ‘death cross’ trend, which has overshadowed ETH USD in the weeks since.
Hopes of a recovery in late September have failed to materialize into a rally, with a strong layer of upside resistance above $2,700 acting to capstone price action.
Worse still, the current failure of Uptober has left Ethereum price reeling below 20DMA support at $2,520, further souring the image.
However, the emergence of an accumulation zone between $2,150 and $2,300 gives holders some hope, with ETH USD now trading in this range for more than 2-months – giving a degree of stability.
This could poise ETH USD for a parabolic upside move when Bitcoin shifts into high gear, a possibility reflected in Ethereum’s alluring RSI at 41.57.
But while ETH USD suffers from a long-time frame technical structure, more exciting opportunities are emerging in the Ethereum layer-2 scene – including one hot new meme coin chain.
This Ethereum Layer-2 Could Flip Your Portfolio Into Parabolic Gains
If Ethereum price action is disappointing you then look no further than Pepe Unchained (PEPU).
This mega-hyped presale is about to hit $19 million in funding, as smart money seems to have chosen this project as the next big meme coin play.
The team is building a new Layer-2 (L2) network on top of Ethereum as an ecosystem for meme coins.
This network will offer all of the safety and security of Ethereum coupled with extremely fast transactions and low-cost fees.
To ensure that the PEPU network has a thriving ecosystem from day one, the team has announced a grant initiative named ‘Frens With Benefits.’
Teams will soon be able to apply for funding to build on the network, which the PEPU Council will vote on.
Developers can use the grants to help fund the development of DeFi protocols, NFTs, GameFi products, etc., on the PEPU chain – ensuring high-octane growth alongside a new platform for meme coin deployment.
The idea is clearly a hit with more than $18.5M raised at press time, and the team is also letting you double down on rewards with a built-in staking mechanism for presale participants.
Once you’ve secured your bag of PEPU, simply begin staking for a juicy 117% APY in return – Wall Street can’t do that, can they?
So don’t miss out. Stay up to date by engaging with the Pepe Unchained community on X and Telegram.
Find Out More About PEPU Here
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