Spell Lifted

Chart of the Day

The September Effect has no doubt played out across the traditional and crypto markets, while macro conditions deteriorate on the back of spiking energy prices and global supply chain vulnerabilities. As the seasonal “spell” gradually unravels, the top two cryptocurrencies by market cap have somewhat regained strength to rally a strong breakout above the $42k and $3k resistance zone respectively. Overall, the month has not panned out in favor of crypto, especially Ether. Open interest for ETH futures is down 40% since the start of September, while options OI suffered a dramatic plunge due to a large number of recent expires. However, given the amount of deleveraging, ETH may have some room for upside movement in the coming months, as Q4 is historically bullish for the broader crypto market.