Ethereum extended the losses yesterday following a hot US PPI report but eventually rebounded strongly as dip-buyers stepped in around key technical levels. The macro and geopolitical pictures haven’t improved at all, so the rebound looks to be driven more by overstretched positioning. This could limit the upside unless we get a breakthrough in US-Iran negotiations or the economic data continues to point towards a strong economy while the Fed remains slow in addressing inflationary pressures. Looking ahead, we have the Flash PMIs, the FOMC, US–Iran negotiations and the US midterm elections as key catalysts. Deteriorating economic data could increase concerns about growth, further weighing on risk sentiment and Ethereum. What could change the picture completely would be an end to the US–Iran war, as that would ease inflationary pressures, improve the growth outlook and likely support a broader recovery in the crypto market. ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that Ethereumhas rebounded from the 2,360 support and the major trendline as the dip-buyers stepped in to position for a rally into the 3,400 level. The sellers will need a break below the trendline to open the door for new lows and target the 1,900 level next.ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a downward trendline defining the bearish momentum. We can expect the sellers to lean on it, with a defined risk above it, to keep targeting a break below the major upward trendline. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into new highs, with the 2,570 level as the first target. ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor support around the 2,420 level. If the price gets there, we can expect the buyers to step in, with a defined risk below it, to keep targeting a break above the trendline. The sellers, on the other hand, will look for a break to increase the bearish bets into the major upward trendline. The red lines define the average daily range for today.-------------------------------------------------What about the Crypto King? Could Bitcoin’s rebound extend toward $86,500? After this week’s hotter-than-expected US CPI and market sell-off, BTC recovered from roughly $79,700 to above $82,000 as of October 16, keeping the video’s Bollinger Band scenario worth revisiting. Watch investingLive’s Exness-powered Short for the technical reasoning behind a possible move toward $86,500, framed as a short-term recovery within the range, with an outcome that remains uncertain and requires your own assessment. This article was written by Giuseppe Dellamotta at investinglive.com.