ETH and a Near-Term Return to $1,700 in the Hands of Genesis

Key Insights:

• It was a mixed Sunday for bitcoin (BTC) and ethereum (ETH), with the BTC ending a three-day winning streak.
• Investor jitters over the Genesis bankruptcy and market reaction to reports of Binance users losing access to SWIFT weighed.
• However, it was a bullish start to the Monday session.

Ethereum (ETH) rose by 0.06% on Sunday. Following a 1.87% gain on Saturday, ETH ended the week up 4.83% to $1,628. ETH avoided sub-$1,600 for the second consecutive session.

A mixed start to the day saw ETH fall to an early low of $1,603. Finding support at the First Major Support Level (S1) at $1,603, ETH rallied to a late afternoon high of $1,664. Coming up against the First Major Resistance Level (R1) at $1,666, ETH fell back to sub-$1,610 before a recovery to end the session at $1,628.

On Sunday, bitcoin (BTC) fell by 0.27%. Partially reversing a 0.46% gain from Saturday, BTC ended the week up by 8.77% to $22,713. Notably, BTC revisited $23,000 for the second time since August.

After a range-bound morning, BTC rose to a mid-afternoon high of $23,072 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $23,276, BTC fell to a late low of $22,310. BTC briefly fell through the First Major Support Level (S1) at $22,350 before ending the day at $22,713.

Genesis and Binance News Left BTC and ETH in a Choppy Sunday Session

It was another choppy session for BTC and ETH on Sunday. Market jitters over the Genesis bankruptcy tested buyer appetite on Sunday. Today, the first bankruptcy hearing will draw plenty of interest, with the platform’s net liability profile likely to impact investor sentiment.

A minimal loss for creditors would limit the impact on BTC, ETH, and the broader crypto market.

News of Binance users losing access to SWIFT also influenced investor sentiment. However, Binance clarified that Signature Bank made changes, with users only able to transfer $100,000 or more via SWIFT.

Today, the Shanghai hard fork chatter and the Genesis bankruptcy hearing will likely be the key areas of interest. There are no US economic indicators or FOMC members speaking to distract investors. However, broader market risk sentiment and the NASDAQ Index could influence this afternoon.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.30% to $1,633. A mixed start to the day saw ETH fall to an early low of $1,626 before rising to a high of $1,643.

Technical Indicators

ETH needs to avoid a fall through the $1,632 pivot to target the First Major Resistance Level (R1) at $1,660 and the Sunday high of $1,664. A return to $1,650 would signal a breakout session. However, the crypto news wires will have to be crypto-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,693 and resistance at $1,700. The Third Major Resistance Level (R3) sits at $1,754.

A fall through the pivot ($1,632) would bring the First Major Support Level (S1) at $1,599 into play. However, barring a broad-based crypto market sell-off, ETH should avoid sub-$1,590 and the Second Major Support Level (S2) at $1,571. The Third Major Support Level (S3) sits at $1,510.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,569. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($1,569) would support a breakout from R1 ($1,660) to target R2 ($1,693). However, a fall through S1 ($1,599) would give the bears a run at S2 ($1,571) and the 50-day EMA ($1,569). A fall through the 50-day EMA would signal a shift in sentiment.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.07% to $22,729. A mixed start to the day saw BTC rise to an early high of $22,822 before falling to a low of $22,662.

Technical Indicators

BTC needs to avoid the $22,698 pivot to target the First Major Resistance Level (R1) at $23,087 and last week’s high of $23,353. A return to $23,000 would support a bullish session. However, the crypto news wires should be market-friendly to deliver a breakout.

In the event of another extended rally, BTC would likely test the Second Major Resistance Level (R2) at $23,460 and resistance at $23,500. The Third Major Resistance Level (R3) sits at $24,222.

A fall through the pivot would bring the First Major Support Level (S1) at $22,325 into play. Barring a broad-based crypto sell-off, BTC should avoid sub-$22,000 and the Second Major Support Level (S2) at $21,936. The Third Major Support Level (S3) sits at $21,174.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA, currently at $21,478. The 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($21,478) would support a breakout from R1 ($23,087) to target R2 ($23,460) and $23,500. However, a fall through S1 ($22,325) would give the bears a run at S2 ($21,936) and the 50-day EMA ($21,478). A fall through the 50-day EMA would signal a shift in sentiment.