LMAX Digital volumes cooled off on Tuesday after a strong start to the week. Total notional volume came in at $163 million, 25% below 30-day average volume.

Bitcoin volume printed $64 million, 41% below 30-day average volume. Ether volume came in at $38 million, 26% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,278 and average position size for ether at $2,075.

Volatility remains exceptionally subdued and sits at multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $1,965 and $77 respectively.

Sentiment in crypto remains somewhat fragile after the softer start to the week, with pressure in global equities and higher yields weighing on overall risk appetite.

Even so, price action in bitcoin and ETH continues to suggest the market may be building a healthier foundation for another push higher rather than entering a more structural downturn.

We continue to lean heavily on the technical picture here, which still points to constructive medium-term setups in both assets.

Bitcoin has now retraced back into a key previous resistance zone that is attempting to act as support, reinforcing the importance of the current range from a broader market structure perspective. At the same time, the macro backdrop remains supportive for bitcoin’s longer-term narrative.

Ongoing geopolitical uncertainty, sticky inflation dynamics and rising concerns around sovereign debt sustainability continue to reinforce bitcoin’s appeal as a store of value asset, particularly at times when traditional risk markets begin to wobble.

ETH, meanwhile, has underperformed modestly amid headlines surrounding departures from the Ethereum Foundation, though we believe the market reaction has become somewhat exaggerated.

Ultimately, Ethereum’s long-term trajectory has always involved reducing reliance on the Foundation itself as the network pushes further toward decentralization.

If anything, the developments reinforce the broader philosophical direction of the ecosystem rather than undermine it. More importantly, Ethereum continues to maintain a commanding lead in the real world asset and tokenization race, which remains one of the most compelling structural growth themes in digital assets today.

From a technical standpoint, ETH is attempting to stabilize after testing rising trend-line support off the yearly low, while bitcoin continues to hold above an important higher low structure.

For today, we will be paying particularly close attention to daily closes above $78k in bitcoin and $2,200 in ETH, levels which could help reinforce the prospect of a more meaningful near-term recovery phase.

Looking slightly further ahead, our focus remains squarely on the $2,400 ETH level, which in our view represents one of the most important macro pivot points for the broader crypto market right now.

A convincing break above there could act as a catalyst for renewed inflows and a much stronger recovery across the digital asset space, especially if accompanied by stabilization in equities and some easing in the broader macro risk backdrop.