ETH Targets $1,400, with BTC Eying $20,000 as Focus Returns to Earnings

Key Insights:

• After a bullish Monday session, bitcoin (BTC) and Ethereum (ETH) found further price support this morning.
• A further pickup in market risk appetite delivered support, while Fed fear continued to prevent a breakout.
• However, the technical indicators remain bearish, with central bank monetary policy and economic uncertainty testing buyer appetite outside the current ranges.

On Monday, bitcoin (BTC) gained 1.49%. Following a 1.03% rise on Sunday, BTC ended the day at $19,554. Notably, BTC fell short of $20,000 for the tenth consecutive session while avoiding a return to sub-$19,000 for a second session.

A bearish start to the day saw BTC fall to an early low of $19,166. Steering clear of the First Major Support Level (S1) at $19,080, BTC rose to an early afternoon high of $19,684.

BTC broke through the First Major Resistance Level (R1) at $19,441 and the Second Major Resistance Level (R2) at $19,615. However, falling short of $20,000, BTC slipped back through R2 to end the day at $19,554.

Ethereum (ETH) rose 1.99% on Monday. Following a 2.43% gain on Sunday, ETH ended the day at $1,332.

A bearish start to the day saw ETH fall to an early morning low of $1,295. Steering clear of the First Major Support Level (S1) at $1,282, ETH rallied to a late high of $1,339. ETH broke through the First Major Resistance Level (R1) at $1,323. However, coming up against the Second Major Resistance Level (R2) at $1,340, ETH eased back to end the day at $1,332.

On Monday, the UK Chancellor announced a reversal of the mini-budget, easing pressure on UK Gilts and delivering support to the Pound and riskier assets. US corporate earnings also provided support. Bank of America (BAC) and Bank of New York Mellon (BK) released positive earnings results.

The upswing in interest rates led to a boost in net interest income. The NASDAQ 100 led the way, rallying by 3.43%, with the Dow and S&P 500 seeing gains of 1.86% and 2.65%, respectively. This morning, the NASDAQ Mini was up 140 points, pointing to another bullish US session.

US economic indicators, FOMC member chatter, and corporate earnings will influence today. Big names delivering earnings results include Goldman Sachs (GS).

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.09% to $19,537.

A mixed morning saw BTC fall to an early low of $19,492 before rising to a high of $19,709.

Technical Indicators

BTC needs to avoid the $19,468 pivot to retarget the First Major Resistance Level (R1) at $19,770. A BTC return to $19,700 would signal a bullish afternoon session. However, following the upbeat earnings results on Monday, more of the same would support another breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $19,986 and $20,000 would likely come into play. The Third Major Resistance Level (R3) sits at $20,504.

A fall through the pivot would bring the First Major Support Level (S1) at $19,252 into play. Barring an extended sell-off, BTC should avoid sub-$19,000 and the Second Major Support Level (S2) at $18,950.

The Third Major Support Level (S3) sits at $18,432.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 100-day EMA, currently at $19,406.

The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA to deliver bullish signals.

BTC needs to move through the 200-day EMA ($19,631) and R1 ($19,770) to target R2 ($19,986) and $20,000. However, a fall through the 100-day EMA ($19,406) would bring the 50-day EMA ($19,352) and S1 ($19,252) into view.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.80% to $1,321. A mixed morning saw ETH rise to an early high of $1,342 before falling to a low of $1,319.

Technical Indicators

ETH needs to avoid the $1,322 pivot to retarget the First Major Resistance Level (R1) at $1,349. However, investor sentiment would need to remain bullish to support a breakout from the morning high of $1,342.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,366 and $1,400 would likely come into play. The Third Major Resistance Level (R3) sits at $1,410.

A fall through the pivot would bring the First Major Support Level (S1) at $1,305 into view. However, barring another crypto sell-off, ETH should avoid sub-$1,290 and the Second Major Support Level (S2) at $1,278.

The Third Major Support Level (S3) sits at $1,234.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above 100-day EMA, currently at $1,319. 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 R1 ($1,349) would give the bulls a run at the 200-day EMA ($1,364) and R2 ($1,366). However, a fall through the 100-day EMA ($1,319) would give the bears a run at the 50-day EMA ($1,308) and S1 ($1,305).