Decentral Block Post

After a brief overshoot above $2,000 on May 6, the Ether price has returned to a tight range between $1,820 and $1,950, which has been the norm for the past three weeks.

According to the latest Ether (ETH) futures and options data, odds favor the Ether price breaking below the $1,820 support, as professional traders have been unwilling to add neutral-to-bullish positions using derivatives contracts.

Not even the memecoin frenzy that boosted Ethereum network demand was able to instill confidence in investors. The average Ethereum transaction fee skyrocketed to $27.70 on May 6, the highest in 12 months, according to BitInfoCharts data. As reported by Cointelegraph, one of the main drivers behind the increase was the insatiable demand for Pepe (PEPE), among other memecoins.

Moreover, the increased gas fees have driven users to layer-2 solutions, which could be interpreted as a weakness. For instance, it causes a decline in the total value locked by removing deposits from the Ethereum chain, especially in decentralized finance applications.

Some analysts believe the $30 million Ether sale by the Ethereum Foundation contributed to ETH being unable to break above $2,000, as nearly 20,000 ETH were sent to the Kraken cryptocurrency exchange. The foundation’s last relevant transfer occurred in November 2021, when the price topped around $4,850 and subsequently declined by 80%.

In today’s The Market Report episode, analyst and writer Marcel Pechman discusses why crypto prices are going down after Bitcoin (BTC) failed to break above $29,000, plus whether or not Jerome Powell is lying about keeping interest rates above 5%, and lastly, what Warren Buffett meant by the “incredible period” coming to an end. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.

The first news article explains why Bitcoin has been trading in a narrow range near $28,000. The culprit? The standoff between markets and policymakers as United States Federal Reserve Chair Jerome Powell publicly stated that interest rates are unlikely to come down this year. Meanwhile, the markets for risk-on assets have firmly priced in rates to decrease in the coming months.

Pechman explains why the Fed raised interest rates above 5% and the apparent disconnection between the 3.4% unemployment rate and the 42 million North Americans who are SNAP recipients (on food stamps). Furthermore, the analyst dives into the $31.5 trillion in government debt and the discussion to further raise this limit.

But, more importantly, Pechman explains that Bitcoin could revisit sub-$20,000 levels if the government is not bluffing by keeping interest rates above 5% throughout 2023. As for the memecoin invasion, Pechman thinks that the PEPE rally (and subsequent correction) is merely a sector rotation, not an altcoin season by any means. Moreover, the analyst explains why futures markets are needed to create balanced and more effective market pricing for PEPE.

On to the show’s next topic: Pechman discusses Warren Buffett’s bear play after increasing his investment holding company Berkshire Hathaway’s cash position to its highest level in 18 months. An incoming recession or merely weaker earnings in the next couple of quarters? Check out today’s Market Report to find out.

The United States consumer price index rose 4.9% annually, which was slightly less than estimates of a 5% increase. The CPI’s monthly rise of 0.4% in April was in line with expectations.

Although inflation remains stubbornly higher than the Federal Reserve’s 2% target range, traders will take comfort from the slower pace of increase. That suggests the Fed rate hikes are having their effect and further rate hikes may not be necessary.

If the Fed pivots and starts to cut rates as the FedWatch Tool projects, that may be positive for risky assets such as equities and cryptocurrencies. Bitcoin (BTC) has responded positively to the CPI data and has risen above $28,000 on May 10.

While the downside looks limited, the bulls may not have it easy at higher levels because of the high risk of a recession and the possibility of the banking crisis erupting again. That may keep the price stuck inside a range, which may act as a base for the next leg of the rally when that happens.

What are the important support and resistance levels to watch out for on Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin (BTC) ticked higher around the May 10 Wall Street open as United States inflation data beat expectations.

Markets eye June Fed rate hike pause

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD responding instantly to the April Consumer Price Index (CPI) print, up 1.7% on the day.

The pair saw local highs of $28,328 on Bitstamp before consolidating immediately above the $28,000 mark.

The CPI had come in at 4.9% year-on-year, a shade below the expected 5.0%. This gave a clear signal that U.S. inflation was continuing to decrease, once more in line with predictions from both the Federal Reserve and external sources.

“Fed’s data dependency kicking off well, strong jobs data and now inflation as expected... pause in June at this stage,” financial commentator Tedtalksmacro wrote in part of a Twitter response.

Memes, internet jokes, and popular culture references have become an integral part of online communities. Because of this, cryptocurrencies inevitably gave birth to a new wave of assets called "memecoins." While some argue that these coins are just a fad, others might also believe in their potential to bring financial gain to their investors. 

One of the most popular memecoins that was recently launched is a frog-themed token called PEPE. The token has gained traction amid the bear market and garnered a lot of support from various members of the community despite its official website saying “the coin is completely useless and for entertainment purposes only.”

According to its creators, PEPE is on a mission to “make memecoins great again” a play on former United States president Donald Trump’s political slogan, make America great again. The project also expressed its intent to surpass dog-inspired meme coins that “already have had their day” and have Pepe, which they argue to be the most recognizable meme in the world, take its place as the “king of memes.”

As it makes its way to the top, PEPE has to surpass the current king that sits on top of the charts for memecoins–Dogecoin. In a Cointelegraph Twitter poll back on April 25, DOGE still remained on top when Twitter was asked what they think will have the biggest market capitalization in 2025. However, PEPE came in close and claimed second place.

PEPE and Dogecoin (DOGE) have their similarities and will inevitably perform differently from each other. Both crypto tokens gained a significant following and were created for a similar reason which is entertainment. However, the difference lies in their journey to a $1 billion market capitalization and performances after hitting the market capitalization.