ETH Returns to $1,200 to Give the Bulls a Run at $1,250 While BTC Trails

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) joined the broader market in positive territory for a second consecutive session on Wednesday.
• Fed pivot talk and easing FTX contagion fear delivered a bullish session, despite plenty of uncertainty surrounding the identity of FTX’s top creditors.
• There were no market events to shift buyer appetite this morning.

Ethereum (ETH) rose by 4.04% on Wednesday. Following a 2.89% gain on Tuesday, ETH ended the day at $1,184. Notably, ETH avoided sub-$1,100 for the first time in three sessions.

A mixed morning saw ETH fall to an early low of $1,126. Steering clear of the First Major Support Level (S1) at $1,094, ETH rose to a late high of $1,190. ETH broke through the First Major Resistance Level (R1) at $1,162 and briefly through the Second Major Resistance Level (R2) at $1,185 before easing back.

On Wednesday, bitcoin (BTC) rose by 2.44%. Following a 2.87% gain from Tuesday, BTC ended the day at $16,613. Notably, BTC avoided sub-$16,000 for the first time in three sessions.

A mixed start to the day saw BTC fall to an early morning low of $16,168. Steering clear of the First Major Support Level (S1) at $15,791, BTC rallied to a late high of $16,682. BTC broke through the First Major Resistance Level (R1) at $16,469 to end the day at $16,613.

FTX contagion risk eased further on Wednesday, providing price support. Following the news of FTX holding $1.24 billion in cash reserves, former FTX CEO Sam Bankman-Fried raised hopes of investors saving the company in a letter to employees. The former CEO said billions of dollars of investor interest could make customers whole.

Market bets of a December Fed pivot provided support later in the day. The FOMC meeting minutes showed that FOMC members are discussing plans to raise rates at a slower pace. On Wednesday, the NASDAQ Composite Index also benefited from the minutes, rising by 0.99%.

This morning, investors appeared to be on a more cautious footing after two bullish sessions. While ETH returned to $1,200, BTC continued to fall short of $17,000.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 1.45% to $1,201. A bullish morning saw ETH rise from an early low of $1,179 to a high of $1,216. ETH broke through the First Major Resistance Level (R1) at $1,207 before easing back.

Technical Indicators

ETH needs to hold above the $1,167 pivot to retarget the First Major Resistance Level (R1) at $1,207 and the morning high of $1,216. An ETH return to $1,216 would signal a bullish afternoon session. However, the crypto news wires need to provide support.

In the event of an extended rally, ETH would likely test the Second Major Resistance Level (R2) at $1,231 and resistance at $1,250. Third Major Resistance Level (R3) at $1,295.

A fall through the pivot would bring the First Major Support Level (S1) at $1,143 into play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,100. The Second Major Support Level (S2) at $1,103 should limit the downside.

The third Major Support Level sits at $1,039. News of more crypto platforms freezing withdrawals would bring sub-$1,100 into play.

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 $1,242. The 50-day EMA narrowed to the 200-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering bearish signals.

A move through R1 ($1,207) would bring R2 ($1,231) and the 100-day EMA ($1,242) into play. However, a fall through the 50-day EMA would put ETH under pressure.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.11% to $16,594. A mixed morning saw BTC rise to an early high of $16,804 before falling to a low of $16,518.

Technical Indicators

BTC needs to hold above the $16,488 pivot to retarget the First Major Resistance Level (R1) at $16,807. A return to $16,800 would signal a bullish afternoon session. However, news updates will have to be market-friendly to support a breakout session.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $17,001. The Third Major Resistance Level (R3) sits at $17,516.

A fall through the pivot would bring the First Major Support Level (S1) at $16,293 into play. Barring another extended sell-off, BTC should avoid sub-$16,000 and the Second Major Support Level (S2) at $15,974. However, negative FTX-related news could send BTC to sub-$15,000.

The Third Major Support Level (S3) sits at $15,460.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat at the 50-day EMA, currently at $16,553. The 50-day EMA slipped back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A BTC breakout from the 50-day EMA ($16,553) would support a move through R1 ($16,807) to bring R2 ($17,001) and the 100-day EMA ($17,131) into play. However, a fall through the 50-day EMA ($16,553) would bring S1 ($16,293) into view.