As global markets navigate a wave of uncertainty driven by ongoing Middle East tensions, the cryptocurrency sector is experiencing a period of cautious consolidation. Bitcoin, Ethereum, and XRP are all trading sideways, reflecting a broader risk-off sentiment among investors.
Bitcoin: Sideways Action Amid Global Uncertainty
Bitcoin remains range-bound, trading just below the $107,000 mark as investors digest the latest geopolitical developments. The muted price action comes as US President Trump departs the G7 summit early, calling for the evacuation of Tehran and signaling potential escalation in the region. This backdrop has kept risk appetite in check, with Bitcoin unable to break above its key resistance level.
Despite the lack of upward momentum, institutional interest in Bitcoin remains robust. US spot Bitcoin ETFs recorded a net inflow of $412 million on Monday, led by BlackRock’s IBIT and Fidelity’s FBTC. This steady inflow suggests that investors continue to view Bitcoin as a hedge against traditional market volatility, even as technical indicators like the MACD and RSI point to a cautious outlook. Should Bitcoin break above $107,000, a move toward $110,000 could be on the cards, but downside risks remain with support levels at $103,064, $98,783, and $93,083.
Ethereum: Holding Key Support, Awaiting Catalyst
Ethereum is trading around $2,561, maintaining its position above critical support levels, including the 200-day EMA at $2,476. The asset has seen renewed inflows into spot ETFs, with BlackRock’s ETHA and Fidelity’s FETH leading the way. The RSI is stabilizing above the midline, hinting at potential bullish momentum if market sentiment improves. However, the MACD continues to flash a sell signal, and any sustained move below support could see Ethereum test lower levels.
XRP: Struggling to Break Resistance
XRP is currently trading at $2.20, down slightly on the day after being rejected at the $2.24 resistance, where the 50-day and 100-day EMAs converge. The 200-day EMA at $2.09 offers a potential safety net against further declines. Analysts expect XRP to remain range-bound in the near term, with a breakout above $2.28 potentially opening the door to $2.45 or even $3.00 if trading volumes pick up 4.
Market Outlook: Eyes on the Fed
With the Federal Reserve’s policy meeting on the horizon, crypto investors are closely watching for any signals on interest rates. Historically, higher rates have weighed on crypto prices, while a dovish stance could provide a tailwind for risk assets. For now, the market remains in wait-and-see mode, with technical and macroeconomic factors both playing a pivotal role in shaping the next move.
