LMAX Digital volumes improved from Tuesday levels but were still on the softer side. Total notional volume for Wednesday came in at $180 million, 17% below 30-day average volume.

Bitcoin volume printed $89 million, 19% below 30-day average volume. Ether volume came in at $32 million, 36% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,301 and average position size for ether at $2,037.

Volatility remains exceptionally subdued and sits at multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $1,908 and $75 respectively.

Bitcoin continues to consolidate near the upper end of its 2026 range, with the broader tone across crypto markets remaining constructive despite still uneven participation beneath the surface.

The fundamental backdrop for digital assets continues to improve, supported by resilient institutional demand, ongoing ETF inflows, and a macro environment that has increasingly favored alternative stores of value.

Price action in recent weeks suggests bitcoin is attempting to reassert itself, though conviction will ultimately depend on broader market participation and follow-through from ETH. For now, the market remains encouraged by bitcoin’s resilience during periods of broader cross-asset uncertainty.

Ethereum remains the key missing piece in the current rally structure. While bitcoin has shown signs of renewed momentum and relative strength, ETH continues to lag and has yet to deliver the type of decisive breakout that would confirm a broader expansion phase for the asset class.

We remain focused on the $2,400 area as a critical technical and psychological threshold. The setup remains constructive, with ETH attempting to base from rising trendline support off yearly lows, though a sustained push through $2,400 is needed to unlock momentum-driven inflows and encourage renewed participation across higher beta crypto assets.

Macro conditions have generally shifted back in favor of digital assets over the past several sessions. The US Dollar has resumed its broader pullback as markets reassess the scope for additional Fed tightening, while risk sentiment across equities has stabilized following recent volatility.

Softer oil prices after Wednesday’s sharp decline have also helped ease inflation concerns at the margin, supporting appetite for risk-sensitive assets including crypto. In many respects, crypto continues to trade as a hybrid between a macro liquidity asset and a technology growth proxy, leaving it highly sensitive to moves in yields, the dollar, and broader cross-asset volatility conditions.

At the same time, geopolitical developments remain an important variable for near-term sentiment. Ongoing uncertainty surrounding US-Iran negotiations and broader Middle East tensions has preserved some safe-haven demand for the dollar and limited the extent of risk recovery across global markets.

However, unless geopolitical risks materially escalate, the broader medium-term setup for crypto remains favorable given expectations for eventual global policy easing, improving liquidity conditions, and continued institutional adoption trends.

Looking ahead, markets will continue to monitor incoming US macro data, Fed communication, and developments within traditional financial markets for direction. For crypto specifically, the focus remains on whether ETH can finally deliver upside confirmation and begin to catch up to bitcoin’s relative strength.

A successful ETH breakout would likely reinforce confidence that the current recovery phase is evolving into a broader cyclical advance rather than remaining a narrowly concentrated bitcoin-led move.