ETH Bulls to Retarget $1,700 on US Stats and Hard Fork News

Key Insights:

• It was a mixed Monday for bitcoin (BTC) and ethereum (ETH), with the BTC rising for a fourth day from five.
• A bullish NASDAQ Index and updates from the Genesis bankruptcy Court delivered support.
• However, it was a bullish start to the Tuesday session.

Ethereum (ETH) slipped by 0.06% on Monday. Reversing a 0.06% gain from Sunday, ETH ended the day at $1,627. ETH fell sub-$1,600 for first time in three sessions

After a range-bound morning, ETH rose to an early afternoon high of $1,649. Coming up short of the First Major Resistance Level (R1), ETH slid to an early afternoon low of $1,584. ETH briefly fell through the First Major Support Level (S1) at $1,599 before briefly revisiting $1,640. However, a late pullback left ETH flat for the session.

On Monday, bitcoin (BTC) rose by 0.87%. Reversing a 0.27% loss from Sunday, BTC ended the day at $22,910. Notably, BTC revisited $23,000 for the third time since August.

After a range-bound morning, BTC fell to a mid-afternoon low of $22,497 before finding support. Steering clear of the First Major Support Level (S1) at $22,325, BTC rose to a late afternoon high of $23,169. BTC broke through the First Major Resistance Level (R1) at $23,087 before easing back to end the day at $22,910.

Genesis and the NASDAQ Index Deliver Price Support

Following a mixed Sunday session, investor focus turned to the first day of Genesis bankruptcy Court proceedings. Unlike the collapse of FTX that threatens leaving creditors with significant losses, proceedings were more orderly, easing Genesis contagion fears.

Genesis lawyers and creditors were reportedly optimistic about resolving the disputes with creditors. Genesis lawyers also told the Court that they are exploring the possibility of selling the firm to make creditors whole. It was a crypto market-friendly start to bankruptcy proceedings, supporting the bullish start to the week.

Beyond the crypto market, the NASDAQ Index also delivered support, with tech stocks on the move. The bullish start to the week came ahead of a busy earnings calendar, with Microsoft (MSFT) and Tesla (TSLA) among the big names to release earnings this week.

The NASDAQ Index rose by 2.01%, with the S&P 500 rising by 1.19%.

Today, investors need to monitor Genesis and FTX news updates, with Shanghai hard fork chatter also needing consideration. In the afternoon session, US economic indicators and corporate earnings will also provide direction.

Prelim January private sector PMIs will need to be better than expected to support a bullish session. Microsoft will release earnings results that will also draw interest.

Last quarter, Microsoft earnings results impacted on the crypto market. With investor jitters about a hard landing lingering, a gloomy outlook would likely weigh on investor sentiment,

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.67% to $1,638. A mixed start to the day saw ETH fall to an early low of $1,623 before rising to a high of $1,642.

Technical Indicators

ETH needs to avoid a fall through the $1,620 pivot to target the First Major Resistance Level (R1) at $1,656. A move through the Monday high of $1,649 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 $1,685 and resistance at $1,700. The Third Major Resistance Level (R3) sits at $1,750.

A fall through the pivot ($1,620) would bring the First Major Support Level (S1) at $1,591 into play. However, barring another broad-based crypto market sell-off, ETH should avoid sub-$1,580 and the Second Major Support Level (S2) at $1,555. The Third Major Support Level (S3) sits at $1,490.

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 $1,580. 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 S1 ($1,591) and the 50-day EMA ($1,580) would support a breakout from R1 ($1,656) to target R2 ($1,685) and $1,700.. However, a fall through S1 ($1,591) and the 50-day EMA ($1,580) would give the bears a run at S2 ($1,555) and the 100-day EMA ($1,505). 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 0.66% to $23,062. A mixed start to the day saw BTC fall to an early low of $22,857 before rising to a high of $23,137.

Technical Indicators

BTC needs to avoid the $22,859 pivot to target the First Major Resistance Level (R1) at $23,220 and last week’s high of $23,353. A move through the Monday high of $23,169 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 $23,531. The Third Major Resistance Level (R3) sits at $24,203.

A fall through the pivot would bring the First Major Support Level (S1) at $22,548 into play. Barring a broad-based crypto sell-off, BTC should avoid sub-$22,000. The Second Major Support Level (S2) at $22,187 should limit the downside. The Third Major Support Level (S3) sits at $21,515.

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 $21,432. 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 ($21,733) would support a breakout from R1 ($23,220) to target R2 ($23,531) and $24,000. However, a fall through S1 ($22,548) would give the bears a run at S2 ($22,187) and the 50-day EMA ($21,733). A fall through the 50-day EMA would signal a shift in sentiment.