ETH Bulls to Target a Return to $1,200 or Face a Slide to Sub-$1,150

Key Insights:

• On Saturday, bitcoin (BTC) and ethereum (ETH) found much-needed support, with ETH ending a three-day losing streak.
• Investor jitters over a Binance liquidity crunch eased as crypto market players addressed the current FUD campaign against Binance.
• Market conditions improved this morning, but headwinds will likely prevent a meaningful breakout.

Ethereum (ETH) rose by 1.71% on Saturday. Partially reversing a 7.89% slide from Friday, ETH ended the day at $1,187. ETH ended the day at sub-$1,200 for the second time since November 28.

A mixed morning saw ETH fall to a low of $1,162. Steering clear of the First Major Support Level (S1) at $1,122, ETH struck a final hour high of $1,190. However, coming up short of the First Major Resistance Level (R1) at $1,246, ETH eased back to end the day at $1,187.

On Saturday, bitcoin (BTC) rose by 0.91%. Partially reversing a 4.21% slide from Friday, BTC ended the day at $16,793. Notably, BTC fell short of $17,000 for the first time since November 29.

A mixed start to the day saw BTC fall to an early low of $16,609. Steering clear of the First Major Support Level (S1) at $16,280, BTC rose to a final-hour high of $16,811. However, coming up short of the First Major Resistance Level (R1) at $17,274, BTC eased back to end the day at $16,793.

Binance Liquidity Crunch Fears Subside While Recession Fears Linger

BTC and ETH joined the broader crypto market in positive territory on Saturday. Easing fears of a Binance liquidity crunch delivered much-needed support. Crypto market participants addressed areas of the ongoing FUD campaign against Binance.

Binance CEO CZ shared tweets to address investor concerns, which supported a BNB breakout session that likely eased investor jitters. However, the crypto bulls failed to reverse losses from Thursday and Friday, with crypto headwinds likely to continue testing buyer appetite.

Today, we expect the crypto news wires to continue providing direction. US lawmakers and regulatory chatter and updates on crypto exchange liquidity will likely be focal points. Late in the day, the NASDAQ mini will also influence.

With the hawkish Fed and recession fears adding to the bearish sentiment, a bullish NASDAQ mini would provide hopes of a holiday rally.

Ethereum (ETH) Price Action

At the time of writing, ETH was up by 0.47% to $1,193. A mixed start to the day saw ETH fall to an early low of $1,180 before rising to a high of $1,197.

The First Major Resistance Level (R1) at $1,197 capped the upside early on.

Technical Indicators

ETH needs to avoid the $1,180 pivot to retarget the First Major Resistance Level (R1) at $1,197 and $1,200. A return to $1,200 would signal a bullish afternoon session. However, the crypto news wires will 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 $1,208. The Third Major Resistance Level (R2) sits at $1,236.

A fall through the pivot would bring the First Major Support Level (S1) at $1,169 into play. However, barring another event-driven sell-off, ETH should avoid sub-$1,150. The Second Major Support Level (S2) at $1,152 should limit the downside. The Third Major Support Level (S3) sits at $1,124.

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 $1,244. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($1,197) would support a breakout from R2 ($1,208) to bring R3 ($1,236) and the 50-day EMA ($1,244) into view. However, failure to return to $1,200 would leave ETH under pressure.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up by 0.01% to $16,794. A range-bound start to the day saw BTC fall to an early low of $16,726 before rising to a high of $16,818.

Technical Indicators

BTC needs to avoid the $16,738 pivot to target the First Major Resistance Level (R1) at $16,866. A BTC move through the Saturday high of $16,811 would signal a bullish session. However, investors will need convincing reassurances from exchanges of adequate reserves to support the continued recovery from Friday’s pullback.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $16,940 to bring $17,000 into view. The Third Major Resistance Level (R3) sits at $17,142.

A fall through the pivot would bring the First Major Support Level (S1) at $16,664 into play. Barring a risk-off-fueled sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,536 should limit the downside. The Third Major Support Level (S3) sits at $16,334.

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 100-day EMA, currently at $17,123. After Friday’s bearish cross, the 50-day EMA closed in on the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A bearish cross of the 50-day EMA through the 100-day EMA would support a fall through S1 ($16,664) to bring S2 ($16,536) into play. However, a move through R1 ($16,866) would support a breakout from R2 ($16,940) to bring the 100-day EMA ($17,123) into view.