5 min readBitcoin continues to hold steady, consolidating just below 105k, struggling for direction even as the broader market mood improved after President Trump said he would delay a decision on attacking Iran.
Bitcoin is set to end the week at approximately the same level it started. This marks the second straight week that BTC has struggled for direction, trading within a tight range since reaching its record high in early June. Trading continues to see low volatility, tight price action, and subdued on-chain activity.
Bitcoin and its sector peers have barely reacted to Trump’s announcement that he would decide within two weeks whether to involve the US in the Israel-Iran conflict directly. However, other risk assets, such as stocks, are pushing higher while safe-haven Gold has fallen back below $3350. Trump has eased concerns of an imminent attack on Iran, which would mark a significant escalation if it were to happen.
Bitcoin also remains rangebound after the hawkish Federal Reserve rate decision earlier in the week. While the Fed left rates unchanged on Wednesday in line with expectations, Federal Reserve Chair Jerome Powell warned that inflation was expected to rise meaningfully as Trump’s trade tariffs impact the economy.
Is Ethereum set to break out?
Ethereum is hovering around 2500 as it continues to trade within a familiar range, within which it has traded since the start of May—however, data points to increased network adoption and user participation, which, together with the Genius Act optimism, could help stage a breakout.
According to data from Santiment, the number of new Ethereum addresses created in a week has ramped up over the past month and has risen by a third compared to this time last year. The data showed that the number of ETH addresses created each week is now in the range of 800k—1 million.
This notable increase in adoption follows positive developments surrounding the Ethereum ecosystem over the past few months, including the Pectra upgrade and, more recently, the Genius Act passing the Senate vote with strong support.
The enactment of the US stablecoin legislation, the Genius Act, has come with expectations that it will strengthen Wall Street’s adoption of Ethereum. Ethereum’s position as the leading blockchain for decentralised finance and stablecoin issuance means it stands to gain more than most from the Genius Act.
According to Etherealize, 75% of U.S. dollar coins (USDCs) exist in the Ethereum-based ecosystem. This could accelerate with the Genius Act, as Ethereum becomes the core of stablecoin strategies.
Where next for Ethereum?
ETH trades in a holding pattern caught between 2450 and 2750, the 38.2% and 50% Fib retracements of the 4100 high and 1385 low. The price has struggled to overcome the 200 SMA, which has also been capping gains over the past six weeks.
The setup lends itself to a breakout trade. Buyers will look to rise above the 200 SMA at 2600 and the 2750 Fib level to extend gains towards 3000.
On the downside, sellers will need to take out support at 2450 to bring 2000 back into focus.
Trading involves risk.
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