ETH Bulls Eye $1,280 to Plan a First Visit to $1,300 in Five Sessions

Key Insights:

• On Friday, bitcoin (BTC) and ethereum (ETH) gave up some of Thursday’s gains in a risk-off afternoon session.
• US economic indicators and the NASDAQ Composite Index left BTC, ETH, and the broader crypto market in the red.
• Following Friday’s economic indicators, we can expect some caution ahead of the US CPI report due on Tuesday.

Ethereum (ETH) fell by 1.33%. Partially reversing a 3.90% rally from Thursday, ETH ended the day at $1,263. Despite the bearish session, ETH avoided sub-$1,250 for the first time in seven sessions.

A bullish morning saw ETH rise to a mid-day high of $1,297. Coming up short of the First Major Resistance Level (R1) at $1,308, ETH slid to a late low of $1,256. However, steering clear of the First Major Support Level (S1) at $1,237, ETH found support to end the day at $1,263.

On Friday, bitcoin (BTC) fell by 0.63%. Partially reversing a 2.37% gain from Thursday, BTC ended the day at $17,137. Notably, BTC avoided a return to sub-$17,000 for the first time since the collapse of FTX.

A bullish morning session saw BTC rise to a mid-day high of $17,366. Coming up short of the First Major Resistance Level (R1) at $17,461, BTC fell to an early afternoon low of $17,053. However, steering clear of the First Major Support Level (S1) at $16,894, BTC revisited $17,161 before easing back.

Fed Pivot Bets Tested as Wholesale Inflation Beats Forecasts

US wholesale inflation figures for November beat forecasts, sending BTC, ETH, and the broader crypto market into negative territory.

While the producer price index reflected softer inflation in November, wholesale inflation remained elevated, suggesting a continued pass-through to consumer prices over the near term.

In contrast, the Michigan Inflation Expectations Index fell from 4.9% to 4.6%, with the Consumer Sentiment Index rising from 56.8 to 59.1, delivering modest crypto support.

The NASDAQ Composite Index fell by 0.74% on Friday, with the latest inflation report weighing on investor sentiment ahead of the CPI report due on Tuesday.

Today, we expect investors to tread carefully, with the CPI report, the FOMC interest rate decision, and FOMC economic projections looming.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.20% to $1,265. A range-bound start to the day saw ETH rise to an early high of $1,269 before easing back.

Technical Indicators

ETH needs to move through the $1,272 pivot to target the First Major Resistance Level (R1) at $1,288 and the Friday high of $1,297. A return to $1,280 would signal a bullish afternoon session.

In the event of an extended rally, the bulls would likely take a run at the Second Major Resistance level (R2) at $1,313. The Third Major Resistance Level (R2) sits at $1,354.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,247 in play. However, barring a crypto event-fueled sell-off, ETH should avoid sub-$1,240 and the Second Major Support Level (S2) at $1,231. The Third Major Support Level (S3) sits at $1,190.

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 $1,256. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through the 200-day EMA ($1,272) would support a breakout from R1 (1,288) to bring R2 ($1,313) into play. However, a fall through the 50-day ($1,258) and the 100-day ($1,252) EMAs would bring S1 ($1,247) into view.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.13% to $17,160. A range-bound start to the day saw BTC rise to an early high of $17,171 before easing back.

Technical Indicators

BTC needs to move through the $17,185 pivot to target the First Major Resistance Level (R1) at $17,318 and this week’s high of $17,436. A move through the Monday high of $17,436 would signal a bullish session.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $17,498. The Third Major Resistance Level (R3) sits at $17,811.

Failure to move through the pivot would leave the First Major Support Level (S1) at $17,005 in play. Barring an extended sell-off, BTC should avoid sub-$16,750. The Second Major Support Level (S2) at $16,872 should limit the downside. The Third Major Support Level (S3) sits at $16,559.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat below the 200-day EMA, currently at $17,313. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through the 200-day ($17,313) and R1 ($17,318) would give the bulls a run at R2 ($17,498). However, a fall through S1 ($17,005) and the 50-day ($17,002) and 100-day ($16,968) EMAs would bring S2 ($16,872) into view.