LMAX Digital volumes were slightly on the softer side on Tuesday. Total notional volume came in at $164 million, 1% below 30-day average volume.

Bitcoin volume printed $78 million, 10% below 30-day average volume. Ether volume came in at $27 million, 17% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,179 and average position size for ether at $1,834.

Volatility remains subdued and continues to track at multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $1,559 and $60 respectively.

We’ve returned from a short summer break to find the digital asset market remarkably unchanged.

Despite a meaningful improvement in global risk sentiment, driven by easing geopolitical tensions, softer oil prices and another strong round of corporate earnings, both Bitcoin and Ethereum have remained locked in exceptionally tight trading ranges.

Rather than viewing the lack of follow-through as a negative, we see it as evidence that recent gains are being absorbed through healthy consolidation rather than aggressive profit-taking.

One factor likely contributing to the subdued price action is the market’s increasingly muted expectations around the CLARITY Act. Political gridlock in Washington has reduced confidence that meaningful legislation is imminent, removing what had previously been viewed as a near-term catalyst.

At the same time, the absence of lofty expectations leaves the market well positioned for upside should progress emerge from an unexpected direction.

That alternative path may ultimately come from the SEC under Chairman Paul Atkins. A more constructive regulatory framework delivered through the Commission could provide many of the practical benefits the industry has been seeking, while also increasing pressure on lawmakers to eventually move the CLARITY Act forward.

If market participants begin to see credible signs of a friendlier regulatory environment taking shape, it could provide the catalyst needed to break digital assets out of their current consolidation.

From a technical perspective, the latest range-bound price action has helped clarify the key levels that matter most. Bitcoin continues to face important resistance around 67,300, while Ethereum needs to reclaim the 2,000 level to confirm the next leg higher.

A decisive break above these thresholds would likely attract fresh momentum buying and reinforce the broader recovery that has been building over recent weeks.

Perhaps the most encouraging development beneath the surface remains Ethereum’s improving performance relative to Bitcoin. The strengthening ETHBTC ratio points to healthier participation across the broader digital asset ecosystem rather than demand being concentrated solely in Bitcoin.

Historically, periods of sustained Ethereum outperformance have been associated with improving market breadth and stronger risk appetite across crypto, reinforcing our constructive medium-term outlook despite the recent lack of headline-grabbing price action.