ETH and BTC Are Under NASDAQ Index Influence on China Protest News

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) had bearish sessions on Sunday while ending the week in positive territory.
• Risk aversion sent BTC and ETH into the red on Sunday and through this morning’s session.
• News of protests across China over lockdown measures sent riskier assets into negative territory this morning.

Ethereum (ETH) fell by 1.00% on Sunday. Reversing a 0.50% gain from Saturday, ETH ended the week up 4.67% to $1,193. Despite the Sunday loss, ETH revisited $1,200 for a fourth consecutive session.

A bullish morning saw ETH rise to an early high of $1,223. Coming within range of the First Major Resistance Level (R1) at $1,228, ETH slipped to sub-$1,210 before steadying. However, a late sell-off saw ETH slide to a final-hour low of $1,188. Finding support at the First Major Support Level at $1,189, ETH ended the day at $1,193.

On Sunday, bitcoin (BTC) slipped by 0.15%. Following a 0.36% loss on Saturday, BTC ended the day at $16,435. Notably, BTC avoided sub-$16,000 for the fifth consecutive day while extending the losing streak to four sessions.

A bullish start to the day saw BTC rise to an early high of $16,603. Coming up short of the First Major Resistance Level (R1) at $16,642, BTC slid to a late low of $16,410. However, steering clear of the First Major Support Level (S1) at $16,334, BTC found late support to end the day at $16,435.

The end of the US Thanksgiving holidays left trading volumes on the lower side. While investor sentiment toward FTX contagion continued to improve, risk aversion hit the global financial markets in the final hour (UTC) of the Sunday session and this morning.

News of protests across China sent riskier assets into negative territory, overshadowing investor optimism of lower FTX contagion risk.

Later today, FTX news updates and the NASDAQ Composite Index will provide direction through the afternoon session. At the time of writing, the NASDAQ mini was down 90.25 points.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 1.93% to $1,170. A bearish start to the day saw ETH slide from an early high of $1,199 to a low of $1,158.

ETH fell through the First Major Support Level (S1) at $1,180 and briefly through the Second Major Support Level (S2) at $1,166.

Technical Indicators

ETH needs to move through S1 and the $1,201 pivot to target the First Major Resistance Level (R1) at $1,215 and the Sunday high of $1,223. An ETH return to $1,200 would signal a bullish afternoon session. However, the NASDAQ Index and the crypto news wires need to provide support.

In the event of an extended rally, ETH would likely test the Second Major Resistance Level (R2) at $1,236. Third Major Resistance Level (R3) at $1,271.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $1,166 in play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,150 and the third Major Support Level at $1,131.

News of more crypto platforms freezing withdrawals would bring sub-$1,100 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,194. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through S1 ($1,180) and the 50-day EMA ($1,194) would support a run at R1 ($1,215) and the 100-day EMA ($1,226). However, failure to move through the 50-day EMA ($1,194) would leave ETH under pressure.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 1.45% to $16,197. A bearish start to the day saw BTC slide from an early high of $16,487 to a low of $16,052. BTC fell through the day’s Major Support Levels before a move back through the Third Major Support Level (S3) at $16,097.

Technical Indicators

BTC needs to move through S2, S1, and the $16,483 pivot to target the First Major Resistance Level (R1) at $16,555 and the Sunday high of $16,603. A return to $16,500 would signal a bullish session. However, BTC would need the NASDAQ Composite Index and friendly FTX-linked news updates to support a breakout session.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $16,676. The Third Major Resistance Level (R3) sits at $16,869.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $16,097 in play. Barring an extended sell-off, BTC should avoid sub-$16,000.

However, negative FTX-related news or a risk-off fueled extended sell-off would bring sub-$16,000 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $16,504. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A BTC move through the Major Support Levels and a breakout from the 50-day EMA ($16,504) would bring R1 ($16,555) into play. However, a failure to break out from the 50-day EMA ($16,504) would leave BTC under pressure.