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On Friday, the broader market resumed its sideway movements after the FOMC meeting concluded with a dovish 25 basis-point rate hike. The U.S. Federal Reserve's decision to cap the rate hikes to nine instances over the next two years is a much milder one than what many investors have been expecting, and capital is flowing back into the U.S. equity markets as a result of that. In turn, it may be possible that said capital inflow will cascade into the crypto market in the near future. For the time being, however, BTC's trading channel seems to have narrowed even further to range between the $38k to $42k levels. As of the time of writing, the largest cryptocurrency by market cap is consolidating above the $40k level, and is building up some pressure to initiate a possible breakout beyond multiple resistance levels near the $41k to $41.5k range. A clear breakout beyond these levels will open BTC up to more upside gains, while downside correction could extend to revisit the $39k support.
ETH seems to be faring better than BTC, as the second-largest cryptocurrency by market cap is currently flirting with the $2,800 level after posting a 1.5% gain within the last 24 hours. Most major altcoins have momentarily flipped red as BTC retraced to $40k after failing to break out of the $41.5k resistance. On the on-chain front, BTC's illiquid supply shock ratio has gone parabolic over the last few days as the BTC supply continues to be absorbed by entities who are more inclined to hold regardless of market conditions. Further, exchange balances have also started to bottom out as many HODL-ers are now moving their BTC off exchanges into cold storage.
Joe Lubin, the CEO of ConsenSys and co-founder of Ethereum, claims that Eth2 will arrive within the next few months or so. Lubin said this during a fireside chat at the Camp Ethereal crypto event in Wyoming last week, proclaiming that Eth2 will come "by Q2 or possibly slipping into Q3". Lubin's prediction is supported by recent major development. According to a blog post by the Ethereum Foundation that was published on Tuesday, Ethereum developers have now managed to deploy a significant testing ground for the Merge. With the successful implementation of the Merge testnet Kiln, the Ethereum network seems to be one huge step closer to being able to transition into a fully fledged proof-of-stoke (PoS) network.