Summary

  • Ethereum staged a strong rebound as markets increasingly bet that the Republican midterm losses will push Trump to seek an exit from the Iran war, easing energy prices and supporting growth and risk sentiment. Vance's comments reinforced these expectations, although Trump can legally continue military operations despite losing congressional control. 

Ethereum whipsawed yesterday as the Democrats’ victory of both the House and the Senate initially weighed on the cryptocurrency before staging a strong rebound.

It looks like the market believes the midterm loss will force Trump to seek an exit from the Iran war, eventually supporting economic growth as energy prices fall significantly.

That’s also what we’ve seen in the oil market yesterday as prices dropped quickly after US Vice President Vance blamed the war with Iran for the Republican Party's heavy losses in the midterm elections. His post published on X reinforced market expectations that the Trump administration could seek an off-ramp from the war rather than escalate military operations.

Keep in mind, though, that Trump can legally continue military operations against Iran even if Democrats control both the House and the Senate. So, it’s not that simple to force Trump out of the war now that he has nothing to lose. But for now, this seems the scenario the market is betting on.

Looking ahead, the focus will remain on US-Iran negotiations. A breakthrough would be positive for Ethereum on improving growth outlook and positive risk sentiment. An escalation, on the other hand, will likely trigger another selloff on increasing growth concerns and safe haven flows.

ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAME

On the daily chart, we can see that Ethereum broke above the downward trendline and opened the door for new highs. The breakout could extend the rally into the 2,575 level. If the price gets there, we can expect the sellers to step in, with a defined risk above the level, to position for a drop into the 1,900 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the 3,400 resistance, with the 2,800 level as the first target.

ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

On the 4 hour chart, we an upward trendline that could act as support in case the price pulls back. If the price gets there, we can expect the buyers to lean on the trendline, with a defined risk below it, to keep targeting new highs. The sellers, on the other hand, will look for a break to increase the bearish bets into the 1,900 level next.

ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

On the 1 hour chart, the consolidation formed a potential bullish pennant. The buyers will want to see the price breaking higher to increase the bullish bets into the 2,575 level, while the sellers will look for a break lower to position for a pullback into the broken trendline. The red lines define the average daily range for today.

UPCOMING CATALYSTS

Today we get the latest US Jobless Claims figures. Tomorrow, we conclude the week with the US NFP report and the University of Michigan Consumer sentiment survey.

There's always something new to learn about the markets. Explore investingLive's educational video collection for quick explanations and useful insights.

Must Read

Best in 2026

Sponsored