After indices managed to halt a recent downward move which was triggered after the disappointing US CPI report last week, they managed to regain some ground at the beginning of this week by rising around 2%. However, this rebound looks to have stalled today as the majority of blue chip indices from Europe are trading mixed and as uncertainty ahead of the next FED decision continues to rise. The US central bank, along with the majority of its peers, remains focused on combating inflation as it continues to raise interest rates and investors are increasingly concerned about the prospect of a global recession as major economies contend with troubling macroeconomic data and as global economic activity continues to slow down. This will certainly be an interesting week for markets as any unexpected events may have a significant impact on performance and volatility while investors await reassurance from central banks and governments.
Ethereum remains under pressure despite successful merge
Despite the successful merge which saw the second biggest cryptocurrency transition from proof of work to proof of stake, a move which was expected to be one of the biggest events in the crypto space, it failed to spark a significant upward move while the majority of cryptocurrencies continue to struggle with uncertainty and mixed performances. Ethereum started the week trading slightly higher after rebounding from a low around $1280 but has been unable to continue moving higher and is trading sideways in the $1350 area as general market sentiment appears to be quite mixed for the majority of assets. Furthermore, while many may be disappointed by the underperformance of the token’s price, the successful transition could be seen as a major step for the space as a whole as it could potentially lead to the SEC reconsidering its position on the token as a security. In either case, the underpermance of ethereum is not unique within the crypto space and while it may have left some doubts between supporters of the project, it also instilled some optimism as it had been delayed several times and was looking more uncertain as time progressed. While this brief rebound may bring some hope, it will be important for the price to break out of this range and return to an upward trend before it attracts new investors once again who may be discouraged at the moment.
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