ETH Bulls to Target $1,270 on Bullish US Stats and the NASDAQ Index

Key Insights:

• On Tuesday, bitcoin (BTC) and ethereum (ETH) joined a broad-based crypto rally.
• Visa and Binance news, together with the NASDAQ Index rebound, delivered a breakout session.
• However, market conditions deteriorated this morning, with investors locking in profits amidst heightened market uncertainty.

Ethereum (ETH) rallied by 4.20% on Tuesday. Reversing a 1.27% fall from Monday, ETH ended the day at $1,217. ETH ended the day at $1,200 for the first time in five sessions.

A mixed start to the day saw ETH dip to an early low of $1,163. Steering clear of the First Major Support Level (S1) at $1,147, ETH rallied to a mid-afternoon high of $1,231. ETH broke through the First Major Resistance Level (R1) at $1,192 and the Second Major Resistance Level (R2) at $1,216 to end the day at $1,217.

On Tuesday, bitcoin (BTC) rallied by 2.90%. Reversing a 1.84% fall from Wednesday, BTC ended the day at $16,924. Notably, BTC revisited $17,000 for the first time in four sessions.

A mixed start to the day saw BTC slip to an early morning low of $16,413. However, steering clear of the First Major Support Level (S1) at $16,197, BTC rallied to a mid-afternoon high of $17,066. BTC broke through the First Major Resistance Level (R1) at $16,761 to end the day at $16,924.

Crypto News Delivers a Bullish Session Amidst Recessionary Fears

After a quiet Monday, Binance and Visa (V) supported a breakout Tuesday session. News of Binance.US acquiring Voyager Digital for $1.022 billion eased fears of a Binance liquidity crunch.

Binance coin (BNB) was among the front-runners on Tuesday, reflecting the shift in sentiment towards Binance and its liquidity profile.

Visa drove demand for ETH and the broader crypto market on news of Visa planning to support Ethereum auto-payments.

However, market conditions deteriorated this morning. Regulatory risk, Fed fear, and recession jitters likely led to profit-taking before the afternoon session.

Today, US economic indicators will influence, with consumer confidence numbers for December in focus. A pickup in consumer confidence should support the NASDAQ Index and the broader crypto market.

However, investors will need to monitor FOMC member chatter, with hawkish commentary likely to weigh on riskier assets.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.43% to $1,212. A mixed start to the day saw ETH rise to an early high of $1,219 before falling to a low of $1,203.

Technical Indicators

ETH needs to avoid the $1,204 pivot to target the First Major Resistance Level (R1) at $1,244 and $1,250. A move through the Tuesday high of $1,231 would signal a bullish afternoon session. However, the crypto news wires and the NASDAQ Index need to deliver support for a breakout session.

In the event of an extended rally, the bulls would likely take a run at the Second Major Resistance Level (R2) at $1,272. The Third Major Resistance level (R3) sits at $1,340.

A fall through the pivot would bring the First Major Support Level (S1) at $1,176 into play. However, barring another event-driven sell-off, ETH should avoid sub-$1,150 and the Second Major Support Level (S2) at $1,136. The Third Major Support Level (S3) sits at $1,068.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,219. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($1,219) would support a breakout from the 100-day EMA ($1,234) and R1 ($1,244). In the event of a move through R1, the 200-day EMA ($1,254) and R2 ($1,272) would come into view. However, failure to move through the 50-day EMA ($1,219) would leave ETH under pressure.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.44% to $16,850. A mixed start to the day saw BTC rise to an early high of $16,934 before falling to a low of $16,791.

Technical Indicators

BTC needs to avoid the $16,801 pivot to target the First Major Resistance Level (R1) at $17,189. A BTC move through the Tuesday high of $17,066 would signal a bullish session. However, the NASDAQ Index will need to support a breakout session.

In the event of an extended rally, BTC would test the Second Major Resistance Level (R2) at $17,454 before any pullback. The Third Major Resistance Level (R3) sits at $18,107.

A fall through the pivot would bring the First Major Support Level (S1) at $16,536 into play. Barring a risk-off-fueled sell-off, BTC should avoid sub-$16,000. The Second Major Support Level (S2) at $16,148 should limit the downside. The Third Major Support Level (S3) sits at $15,495.

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 bearish signal. This morning, BTC sat below the 50-day EMA, currently at $16,954. After Sunday’s bearish cross, the 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through the 50-day ($16,954) and 100-day ($17,014) EMAs would support a breakout from R1 ($17,189) and the 200-day EMA ($17,198) to target R2 ($17,454). However, failure to move through the 50-day EMA ($16,954) would leave sub-$16,500 in play.