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