ETH Bounces Back from sub-$1,000 to Bring $1,100 Resistance into Play

Key Insights:

• On Saturday, Ethereum (ETH) tumbled by 8.4% to reverse a 1.7% gain from Friday.
• Market angst over Fed monetary policy, fears of a global recession, and regulatory uncertainty continued to weigh on investor appetite for cryptos.
• Technical indicators flash red, with ETH sitting below the 50-day EMA.

On Saturday, ETH slid by 8.39%. Reversing a 1.69% gain from Friday, ETH ended the day at $994.0.

A mixed start to the day saw ETH strike an early morning high of $1,096 before hitting reverse.

Falling short of the Major Resistance Levels, ETH slid to a day low of $883.0. The extended sell-off led to a slide through the Major Support Levels to a new current-year low before a partial recovery.

This morning, support from the broader market delivered a return to $1,000 levels. The upside came in spite of a lack of bullish news on the crypto wires to shift investor sentiment.

Ethereum Remains at the Mercy of the Broader Crypto Market

Market sentiment towards Fed monetary policy and fears of a global recession have sent ETH to its lowest level since January 2021.

For ETH holders, news updates on the Merge will continue to provide direction.

News of delays weighed on ETH this week, with price sensitivity likely to suggestions of any further delays.

Earlier this month, FX Empire talked of the Ethereum merge and anticipated price action.

While the Merge may be ETH price positive, crypto headwinds could overshadow any Merge influence. The outcome of the SEC v Ripple case could prove pivotal, with William Hinman placing ETH at the heart of the Ripple defense.

Price Action

At the time of writing, ETH was up 5.59% to $1,054.

A mixed start to the day saw a slide to a morning low of $935 before striking a high of $1,070.

Technical Indicators

ETH will need to avoid the $991 pivot to target the First Major Resistance Level at $1,100.

Support from the broader market would be needed for a breakout from this morning’s high of $1,070.

An extended rebound would test the Second Major Resistance Level at $1,204. The Third Major Resistance Level sits at $1,417.

A fall through the pivot would bring the First Major Support Level at $886 back into play. Barring another extended sell-off, ETH should avoid sub-$800. The Second Major Support Level sits at $778.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. ETH sits below the 50-day EMA, currently at $1,211. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA, price negative.

A return to $1,100 would test resistance at the 50-day EMA and $1,250.