ETH is on the Move, with the NASDAQ Supporting an ETH Run at $1,250

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) joined the broader crypto market in the red on Monday.
• Risk aversion swept across the global financial markets on news of protests across China over the government’s zero-COVID policy.
• However, market risk sentiment improved this morning, reflecting a lack of market concern over the news of BlockFi filing for bankruptcy.

Ethereum (ETH) fell by 2.18% on Monday. Following a 1.00% loss on Sunday, ETH ended the day at $1,167. ETH fell short of $1,200 for the first time in five sessions.

A mixed start to the day saw ETH rise to an early high of $1,199. Coming up short of the First Major Resistance Level (R1) at $1,215, ETH slid to a late afternoon low of $1,150. ETH fell through the First Major Support Level (S1) at $1,180 and the Second Major Support Level (S2) at $1,166 before a partial recovery to end the day at $1,167.

On Monday, bitcoin (BTC) fell by 1.36%. Following a 0.15% decline on Sunday, BTC ended the day at $16,212. Notably, BTC avoided sub-$16,000 for the sixth consecutive day while extending the losing streak to five sessions.

A mixed start to the day saw BTC rise to an early high of $16,487. Coming up short of the First Major Resistance Level (R1) at $16,555, BTC slid to a late afternoon low of $16,002. BTC fell through the day’s Major Support Levels before a late move back through the Third Major Support Level (S3) at $16,097 to end the day a $16,212.

The news of protests across China over the government’s zero-COVID policy and lockdown measures weighed on riskier assets going into the Monday session.

In response to a slide in crude oil prices and the Hang Seng and CSI300, the NASDAQ Composite Index ended the day down by 1.58%.

News of BlockFi filing for bankruptcy pegged the crypto market in negative territory but failed to fuel another sell-off.

However, BTC and ETH found support from a pickup in market risk sentiment this morning.

The Hang Seng and the CSI300 were up 3.99% and 2.81%, respectively, with the NASDAQ mini gaining 51.25 points. Bets on the Chinese government easing lockdown measures drove demand for riskier assets.

Later today, US economic indicators and the NASDAQ Composite Index will likely influence. However, investors will also need to monitor the news wires for updates on FTX bankruptcy proceedings.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 3.48% to $1,208. A bullish start to the day saw ETH rally from an early low of $1,157 to a high of $1,214.

ETH broke through the First Major Resistance Level (R1) at $1,194.

Technical Indicators

ETH has to avoid a fall through R1 and the $1,172 pivot to target the Second Major Resistance Level (R2) at $1,221 and last week’s high of $1,235. An ETH return to $1,220 would signal a bullish afternoon session. However, the crypto news wires and the NASDAQ need to provide support.

In the event of an extended rally, ETH would likely test resistance at $1,250. The Third Major Resistance Level (R2) sits at $1,270.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $1,145 into play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,140 and the Second Major Support Level (S2) at $1,123.

The Third Major Support Level (S3) sits at $1,074.

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 $1,222. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering mixed signals.

A move through R1 ($1,221) and the 100-day EMA ($1,222) would support a run at $1,250 and R3 ($1,270). However, a fall through the 50-day EMA ($1,192) would bring S1 ($1,145) into play.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 1.74% to $16,494. A mixed start to the day saw BTC fall to an early low of $16,101 before rising to a high of $16,543.

BTC broke through the First Major Resistance Level (R1) at $16,465.

Technical Indicators

BTC needs to avoid R1 and the $16,234 pivot to target the Second Major Resistance Level (R1) at $16,719 and last week’s high of $16,804. A return to $16,600 would signal a bullish session. However, BTC would need the NASDAQ and friendly FTX-linked news updates to support a breakout session.

In the event of an extended rally, BTC would likely test resistance at $17,000. The Third Major Resistance Level (R3) sits at $17,204.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $15,980 into play. Barring an extended sell-off, BTC should avoid the Second Major Support Level (S2) at $15,759. The Third Major Support Level (S3) sits at $15,264.

However, negative FTX-related news or a risk-off fueled sell-off would bring sub-$15,000 levels 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 $16,827. 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 breakout from the 50-day EMA ($16,549) would support a move through R2 ($16,719) to target $17,000. However, a failure to break out from the 50-day EMA ($16,549) would bring S1 ($15,980) into view.