ETH Targets $1,300 on BTC Return to $17,000 Ahead of Powell’s Speech

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) joined the broader crypto market in a bullish crypto session on Tuesday.
• A shift in sentiment towards the Chinese government’s lockdown plans and hopes of a December Fed pivot delivered price support.
• This morning, bullish sentiment continued to drive demand for riskier assets, with Fed Chair Powell in the spotlight.

Ethereum (ETH) rallied by 4.20% on Tuesday. Reversing a 2.18% loss from Monday, ETH ended the day at $1,216. ETH wrapped up the day at $1,200 for the first time in three sessions.

A mixed start to the day saw ETH fall to an early low of $1,157. Steering clear of the First Major Support Level (S1) at $1,145, ETH rallied to a late high of $1,227. ETH broke through the First Major Resistance Level (R1) at $1,194 and briefly through the Second Major Resistance Level (R2) at $1,221 before ending the day at $1,216.

On Tuesday, bitcoin (BTC) rose by 1.48%. Reversing a 1.36% loss from Monday, BTC ended the day at $16,452. Notably, BTC avoided sub-$16,000 for the seventh consecutive day while ending a five-day losing streak.

A mixed start to the day saw BTC fall to an early low of $16,101. Steering clear of the First Major Support Level (S1) at $15,980, BTC rose to a mid-morning high of $16,545. BTC broke through the First Major Resistance Level (R1) at $16,465 before a pullback to sub-$16,400. However, a bullish end to the session saw BTC retest R1 before easing back.

Hopes of China easing lockdown measures supported a bullish Tuesday session, with the Hang Seng Index and CSI300 reversing Monday’s losses. Easing FTX contagion fears was also market positive, with investors brushing aside the news of BlockFi filing for bankruptcy.

Later today, the US economic calendar will continue to draw interest, with ADP nonfarm employment change, Q3 GDP, and JOLTs job openings in the spotlight. The labor market numbers will likely have more influence ahead of Fed Chair Powell’s speech.

Fed Chair Powell could have the final say, with talk of another 75-basis point rate hike likely to weigh on BTC and the broader market. Talk of a Fed pivot would support further upside, however.

The NASDAQ mini was up 10.50 points this morning, while BTC and ETH were in breakout mode.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 4.31% to $1,268. A bullish start to the day saw ETH rally from an early low of $1,212 to a high of $1,282.

ETH broke through the First Major Resistance Level (R1) at $1,243 and briefly through the Second Major Resistance Level (R2) at $1,270.

Technical Indicators

ETH has to avoid a fall through R1 and the $1,1200 pivot to retarget the Second Major Resistance Level (R2) at $1,270 and $1,300. An ETH return to $1,280 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 Third Major Resistance Level (R2) at $1,340.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $1,173 into play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,170 and the Second Major Support Level (S2) at $1,130.

The Third Major Support Level (S3) sits at $1,060.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. Ethereum sat below the 200-day EMA, currently at $1,277. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through R2 ($1,270) and the 200-day EMA ($1,277) would support a run at $1,300 and R3 ($1,340). However, a fall through R1 ($1,243) would bring the 100-day ($1,223) and the 50-day ($1,200) EMAs and S1 ($1,173) into play.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 2.64% to $16,886. A mixed start to the day saw BTC fall to an early low of $16,446 before rising to a high of $17,109.

BTC broke through the First Major Resistance Level (R1) at $16,631 and the Second Major Resistance Level (R2) at $16,810.

Technical Indicators

BTC needs to avoid a fall through R2, R1, and the $16,366 pivot to target the Third Major Resistance Level (R3) at $17,254. A hold onto $17,000 would signal an extended breakout session. However, BTC would need US stats, Fed Chair Powell, and friendly FTX-linked news updates to support a breakout from the morning high of $17,109.

In the event of an extended rally, BTC would likely test resistance at $18,000 before any pullback.

A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level (S1) at $16,187 into play. Barring an extended sell-off, BTC should avoid sub-$16,000 and the Second Major Support Level (S2) at $15,922. The Third Major Support Level (S3) sits at $15,478.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a more bullish signal. BTC sat above the 100-day EMA, currently at $16,800 this morning. The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA, delivering bullish signals.

A hold above the 100-day EMA ($16,800) and R2 ($16,810) would support a run at R3 ($17,254) and the 200-day EMA ($17,550). However, a fallback through R2 ($16,810) and the 100-day EMA (16,799) would bring R1 ($16,631) and the 50-day EMA ($16,477) into view.