ETH Bulls to Target a Return to $1,280 or Face a Fall to $1,230

Key Insights:

• On Sunday, bitcoin (BTC) and ethereum (ETH) ended the day in negative territory, weighed by a late sell-off.
• Investor reaction to news of unusual account behavior on Binance and Fed fear led BTC and ETH into the red.
• This morning, market conditions failed to improve. ETH and BTC tested support levels early as investors reacted further to the latest news from Binance.

Ethereum (ETH) fell by 0.32% on Sunday. Reversing a 0.32% gain from Saturday, ETH ended the week down 1.31% to $1,263. ETH fell short of $1,300 for the sixth consecutive session.

After a range-bound morning, ETH rose to an early evening high of $1,285. ETH broke through the First Major Resistance Level (R1) at $1,280 before sliding to a late low of $1,256. However, finding support at the First Major Support Level (S1) at $1,257, ETH wrapped up the day at $1,263.

On Sunday, bitcoin (BTC) fell by 0.13%. Following a 0.02% loss on Saturday, BTC ended the week down 0.10% to $17,110. Notably, BTC avoided a return to sub-$17,000 for the third consecutive session.

After a bullish morning, BTC struck an early evening high of $17,503. BTC broke through the day’s Major Resistance Levels before sliding to a low of $17,092. However, steering clear of the First Major Support Level (S1) at $17,078, BTC found late support to end the day at $17,110.

Binance and Fed Fear Delivered a Bearish Sunday and Early Monday Sell-Off

The late Sunday reversal continued into the Monday session. Investor angst over the news of unusual activity on the Binance exchange weighed on investor sentiment. While Binance delivered updates and announced that the account activity was just normal market behavior, investors remained wary.

Since the collapse of Terra Labs and FTX, investor confidence has failed to recover. Today’s lack of reaction to updates from Binance reflected the long road ahead for platforms to restore confidence.

Adding to the bearish mood is increased Fed fear ahead of tomorrow’s US CPI Report and Wednesday’s Fed interest rate decision. A hot CPI Report could remove hopes of a December Fed pivot that would place BTC and ETH under more selling pressure.

Today, there are no US economic indicators for investors to consider. The lack of stats will leave Binance updates and the NASDAQ Composite Index to guide investors.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 1.34% to $1,246. A bearish start to the day saw ETH fall from an early high of $1,263 to a low of $1,240. ETH fell through the First Major Support Level (S1) at $1,251.

Technical Indicators

ETH needs to move through S1 and the $1,268 pivot to target the First Major Resistance Level (R1) at $1,280 and the Sunday high of $1,285. A return to $1,270 would signal a bullish afternoon session.

In the event of an extended rally, the bulls would likely take a run at the Second Major Resistance level (R2) at $1,297 and $1,300. The Third Major Resistance Level (R2) sits at $1,326.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $1,239 in play. However, barring a crypto event-fueled sell-off, ETH should avoid sub-$1,230 and the Third Major Support Level (S3) at $1,210.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 100-day EMA, currently at $1,255. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through S1 ($1,251) and the 100-day ($1,255) and 50-day ($1,261) EMAs would signal a run at the 200-day EMA ($1,271) and R1 (1,280). However, a failure to move through S1 ($1,251) and the 100-day EMA ($1,255) would leave S2 ($1,239) in view.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.95% to $16,947. A bearish start to the day saw BTC fall from an early high of $17,104 to a low of $16,879.

BTC fell through the First Major Support Level (S1) at $16,967.

Technical Indicators

BTC needs to move through S1 and the $17,235 pivot to target the First Major Resistance Level (R1) at $17,378 and the Sunday high of $17,503. A BTC return to $17,200 would signal a bullish session.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $17,646 to bring $18,000 into view. The Third Major Resistance Level (R3) sits at $18,057.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $16,824 in play. Barring an extended sell-off, BTC should avoid sub-$16,500 and the Third Major Support Level (S3) at $16,413.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 100-day EMA, currently at $17,002. The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through S1 ($16,967) and the 100-day ($17,002) and 50-day ($17,049) EMAs would support a run at the 200-day EMA ($17,293) and R1 ($17,378). However, failure to move through S1 (16,967) and the 100-day EMA ($17,002) would leave S2 ($16,824) in view.