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ETH Bulls to Take Another Run at $1,350 with the US Jobs Report in Focus

By:
Bob Mason
Updated: Dec 2, 2022, 10:26 GMT+00:00

ETH and BTC had a choppy morning this morning. Following Thursday's pullback and with the US Jobs Report in focus it will be a choppy afternoon.

ETH and BTC - technical analysis - FX Empire

Key Insights:

  • Bitcoin (BTC) and ethereum (ETH) joined the broader crypto market in negative territory on Thursday.
  • Profit-taking and US economic indicators weighed on riskier assets, leaving the crypto market on the back foot.
  • Market conditions remained bearish this morning, with investors waiting for the US Jobs Report.

Ethereum (ETH) fell by 1.39% on Thursday. Partially reversing a 6.50% rally from Wednesday, ETH ended the day at $1,277. Despite the pullback, ETH visited $1,300 for the second time since November 11.

After a range-bound morning, ETH rose to an early afternoon high of $1,302. Coming up short of the First Major Resistance Level (R1) at $1,334, ETH fell to a mid-afternoon low of $1,263. However, steering clear of the First Major Support Level of $1,234, ETH revisited $1,283 before easing back.

On Thursday, bitcoin (BTC) fell by 1.16%. Partially reversing a 4.42% rally from Wednesday, BTC ended the day at $16,980. BTC failed to wrap up the day at $17,000 for the second consecutive session.

After a range-bound morning, BTC rose to an early afternoon high of $17,335. However, coming up short of the First Major Resistance Level (R1) at $17,488, BTC fell to a late low of $16,872. Steering clear of the First Major Support Level (S1) at $16,659, BTC found late support to end the day at $16,980.

Following Fed Chair Powell’s less hawkish commentary from Wednesday, investors locked in profits on Thursday morning ahead of a busy US session.

US economic indicators weighed on BTC, ETH, and the broader crypto market, preventing a reversal of earlier losses. Inflation was not soft enough to force the Fed to rethink a 50-basis point rate hike, with a contraction in the US manufacturing sector reigniting fears of a US recession.

Later today, the US Jobs Report will also influence sentiment towards the Fed, the NASDAQ Composite Index, and the crypto market. A pick-up in wage growth and a jump in nonfarm payrolls could refuel bets of a 75-basis point rate hike, which would send BTC and ETH deep into the red.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.10% to $1,278. A mixed morning saw ETH rise to an early high of $1,285 before falling to a low of $1,266.

ETH recovers early losses.
ETHUSD 021222 Daily Chart

Technical Indicators

ETH needs to move through the $1,281 pivot to target the First Major Resistance Level (R1) at $1,298 and the Thursday high of $1,302. While weak US wage growth figures would support a bullish afternoon session, nonfarm payrolls would need to be good enough to ease fears of a US recession.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,320 and $1,350 would likely come into play. The Third Major Resistance Level (R2) sits at $1,359.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,259 in play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,250 and the Second Major Support Level (S2) at $1,242.

The Third Major Support Level (S3) sits at $1,203.

ETH support levels in play below the pivot.
ETHUSD 021222 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. Ethereum sat above the 200-day EMA, currently at $1,277. 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 hold above the 200-day EMA ($1,277) would support a breakout from R1 ($1,298) to target R2 ($1,320) and $1,350. However, a fall through the 200-day EMA would give the bears a run at S1 ($1,259).

EMAs bullish.
ETHUSD 021222 4 Hourly Chart

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.09% to $16,964. A mixed morning saw BTC rise to an early high of $17,044 before falling to a low of $16,865.

BTC recovers from early losses.
BTCUSD 021222 Daily Chart

Technical Indicators

BTC needs to move through the $17,062 pivot to target the First Major Resistance Level (R1) at $17,253 and the Thursday high of $17,335. A return to $17,200 would signal a bullish session. However, BTC would need US stats and FOMC member commentary to support a breakout from the morning high of $17,044.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $17,525. The Third Major Resistance Level (R3) sits at $17,988.

Failure to move through the pivot would leave the First Major Support Level (S1) at $16,790 in play. Barring an extended sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,599 should limit the downside. The Third Major Support Level (S3) sits at $16,136.

BTC support levels in play.
BTCUSD 021222 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $16,848. 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 R1 ($17,253) would give the bulls a run at the 200-day EMA ($17,478) and R2 ($17,599). However, a fall through the 100-day EMA ($16,848) would bring S1 ($16,790) and the 50-day EMA ($16,701) into view.

EMAs more bullish.
BTCUSD 021222 4 Hourly Chart

 

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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