ETH Bulls Target $1,300 as BTC and Investors Celebrate 14 Years

Key Insights:

• On Tuesday, bitcoin (BTC) and ethereum (ETH) ended the day flat.
• Fed fear and a bearish first NASDAQ Index session of the year left BTC and ETH on the back foot.
• However, crypto market conditions turned bullish this morning, supporting a BTC and ETH breakout.

Ethereum (ETH) rose by 0.04% on Tuesday. Following a 1.17% gain on Monday, ETH ended the day at $1,214. ETH avoided sub-$1,200 for the first time in seven sessions.

A bullish start to the day saw ETH rise to a mid-morning high of $1,220. Coming up short of the First Major Resistance Level (R1) at $1,229, ETH fell to an early evening low of $1,204. However, steering clear of the First Major Support Level (S1) at $1,196, ETH bounced back to end the flat.

On Tuesday, bitcoin (BTC) slipped by 0.01%. Following a 0.28% gain on Monday, BTC ended the day at $16,689. Notably, BTC avoided sub-$16,500 for the fourth consecutive session while continuing to come up short of $17,000.

A bullish start to the day saw BTC rise to a mid-morning high of $16,810 before hitting reverse. BTC broke through the First Major Resistance Level (R1) at $16,801. The reversal saw BTC fall to a late afternoon low of $16,625. However, steering clear of the First Major Support Level (S1) at $16,582, BTC bounced back to end the day at $16,689.

Fed Fear Weighed on Tuesday Before BTC Enjoyed a Birthday Breakout

The US markets reopened after the holidays on Tuesday. Hawkish Fed bets drove demand for the greenback, weighing on the NASDAQ Index and the broader crypto market. However, BTC and ETH moved within tight ranges.

US economic indicators failed to influence the crypto market ahead of today’s key stats and FOMC meeting minutes.

This morning, the mood turned bullish, however. BTC celebrated its 14 years in style, testing resistance at $17,000 before easing back. On January 3, 2009, Nakamoto mined the Genesis Bitcoin block. No crypto event supported the breakout morning session, though a bullish NASDAQ mini likely contributed.

On Tuesday, the NASDAQ Index fell by 0.76%. However, the NASDAQ mini was up 26.75 points this morning.

Later today, the US ISM Manufacturing PMI and JOLTs Job Openings will influence ahead of the FOMC meeting minutes. Hawkish minutes and better-than-expected stats could reverse the morning gains.

Ethereum (ETH) Price Action

At the time of writing, ETH was up by 3.13% to $1,252. A bullish morning saw ETH rally from an early low of $1,212 to a high of $1,255. ETH broke through the Major Resistance Levels.

Technical Indicators

ETH must avoid a fall through the Major Resistance Levels and the $1,213 pivot to target a return to $1,300. However, the US economic calendar, FOMC meeting minutes, and the crypto wires need to be crypto-friendly to support an extended rally.

A first return to $1,270 since December 16 would signal a run at $1,300.

However, a fall through the Major Resistance Levels and the pivot ($1,213) would bring the First Major Support Level (S1) at $1,205 into play. Barring an event-driven sell-off, ETH should avoid sub-$1,200 and the Second Major Support Level (S2) at $1,197. The Third Major Support Level (S3) sits at $1,181.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 200-day EMA, currently at $1,228. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

An ETH hold above R3 ($1,245) would support a run at $1,300. However, a fall through R2 ($1,229) and the 200-day ($1,228) could see ETH slide through R1 ($1,221) to bring the 100-day ($1,214) and 50-day ($1,210) EMAs into view. A fall through the 50-day EMA would send a bearish signal.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 1.21% to $16,891. A bullish start to the day saw BTC rally from an early low of $16,671 to a high of $16,929. BTC broke through the First Major Resistance Level (R1) at $16,791 and briefly through the Second Major Resistance Level (R2) at $16,893.

Technical Indicators

BTC needs to avoid a fall through R1 and the $16,708 pivot to breakout from R2 to retarget the Third Major Resistance Level (R3) at $17,078. However, the US stats and the FOMC meeting minutes need to be crypto-friendly to support an extended rally.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $16,606 into play. Barring a crypto risk-off-fueled sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,523 should limit the downside. The Third Major Support Level (S3) sits at $16,338.

An adverse crypto market event would bring sub-$16,000 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat below the 200-day EMA, currently at $16,926. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through R2 ($16,893) and the 200-day EMA ($16,926) would give the bulls a run at R3 ($17,078). However, a fall through R1 ($16,791) would bring the 100-day ($16,765) and the 50-day ($16,705) EMAs into view. A fall through the 50-day EMA would send a bearish signal.