Ethereum Price Forecast: ETH reclaims $4,500 as delayed economic data could spur crypto rally

Ethereum (ETH) reclaimed the $4,500 level on Friday and could stretch its rally further as Coinbase researchers predicted that the crypto market could benefit from the delay in economic data.

Ethereum rises following delay in NFP data

Ethereum reached a two-week high of $4,580 on Friday as the US government's partial shutdown hindered the release of the Nonfarm Payrolls (NFP) data for September.

The Bureau of Labor Statistics (BLS) postponed the release of the data, originally scheduled for Friday, until further notice due to funding lapses resulting from the government shutdown. The delay could create uncertainty for the Federal Reserve (Fed), which relies on labour and other economic statistics for its policy decisions.

Such uncertainty, combined with the recent stall in private market employment, could prompt the Fed to cut rates, an action that could accelerate the crypto market rally.

"We think rate markets have already priced in that shift — 30 day Fed fund futures now price in an 87% chance of two 25bps cuts by year-end — and cross-asset signals validate a lower real-rate, dollar-softer regime that is supportive for crypto," wrote Coinbase researchers David Doug and Colin Basco in a Friday market commentary.

The researchers added that rising expectations of a rate cut and Gold printing fresh highs as the US Dollar weakens "reduces cash-yield competition for risk assets, which should benefit crypto."

Ethereum has warmed up accordingly, with US spot ETH ETFs attracting over $1 billion in net inflows in the past four days, according to SoSoValue data.

Whales have also intensified their buying pressure as the amount of ETH available on centralized exchanges has plummeted to new lows. However, ETH derivatives data shows that cautious sentiment lingers, with funding rates and the 1M 25D put-call option skew remaining relatively muted, according to Coinbase researchers.

Ethereum Price Forecast: ETH faces potential rejection near descending trendline resistance

Ethereum saw $123.8 million in futures liquidations over the past 24 hours, led by $73 million in short liquidations.

After rising above the $4,500 hurdle for the first time in two weeks, ETH is facing a potential rejection at a descending trendline resistance extending from August 24. The top altcoin could rise toward $4,800 if it clears the resistance.

ETH/USDT daily chart

On the downside, ETH could find support around the $4,100 level. The 100-day Simple Moving Average (SMA) could serve as support if ETH declines below $4,100.

The Relative Strength Index (RSI) is above its neutral level while the Stochastic Oscillator (Stoch) is in the overbought region, indicating a dominant bullish momentum. However, overbought conditions in the Stoch could lead to a brief correction.