Running for the hills

💡 DMK Insight

The S&P 500’s struggle to hold onto its late-session gains signals a broader market unease, especially with NFP data looming. Traders should be wary as disappointing employment figures could trigger further volatility, impacting not just equities but also correlated assets like ETH, currently at $1,937.04. A weak NFP report could lead to a risk-off sentiment, pushing ETH and other cryptocurrencies lower as investors flee to safety. Watch for key support levels in ETH around $1,900; a breach could open the door for more downside. On the flip side, if the NFP surprises positively, we might see a short squeeze in both equities and crypto, but that seems less likely given the current sentiment. Keep an eye on the unemployment rate and participation metrics, as they will provide insight into the labor market’s health and potential Fed responses.