ETH and BTC Price Action in the Hands of US Stats and the NASDAQ

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) joined the broader market positive territory on Thursday.
• US economic indicators fell short of expectations easing Fed fear despite Fed Chair Powell’s hawkish speech on Wednesday.
• The technical indicators remain bullish, signaling upward price trajectories.

Ethereum (ETH) rose by 0.86% on Thursday. Partially reversing a 3.80% slide from Wednesday, ETH ended the day at $1,531.

A mixed start to the day saw ETH fall to an early low of $1,515. Steering clear of the First Major Support Level (S1) at $1,473, ETH rose to an early morning high of $1,559. However, coming up short of the First Major Resistance Level (R1) at $1,593, ETH fell back to sub-$1,530 before finding support from US economic indicators.

On Thursday, bitcoin (BTC) rose by 0.29%. Partially reversing a 1.63% loss from Wednesday, BTC ended the day at $20,223. Notably, BTC ended a four-day losing streak while avoiding sub-$20,000 for the ninth day in a row.

A bullish start to the day saw BTC rise to a mid-morning high of $20,404. Coming up short of the First Major Resistance Level (R1) at $20,629, BTC fell to a mid-day low of $20,052. However, steering clear of the First Major Support Level (S1) at $19,900, BTC revisited $20,356 before easing back.

US economic indicators delivered crypto price support, with the all-important ISM Non-Manufacturing PMI missing forecasts.

In October, the ISM Non-Manufacturing PMI fell from 56.7 to 54.4. Economists forecast a decline to 55.5.

The Index sub-components were mixed. The ISM Non-Manufacturing Employment Index fell from 53.0 to 49.1. However, the Prices Index rose from 68.7 to 70.7.

Unit labor costs were crypto-friendly, rising by 3.5% in Q3 versus 8.9% in Q2.

While the stats were crypto-friendly, Fed Chair Powell’s speech was still fresh, weighing on the NASDAQ Composite Index. On Thursday, the NASDAQ Composite Index fell by 1.73%.

Today, the US jobs report will have a material impact on the NASDAQ Composite Index and the crypto market. BTC and ETH sensitivity to US economic indicators and the FED leaves the correlation with the NASDAQ Composite Index in place. This morning, the NASDAQ 100 Mini was up 17.75 points.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 1.16% to $1,549. A bullish morning saw ETH rise from an early low of $1,528 to a high of $1,550.

Technical Indicators

ETH needs to avoid the $1,535 pivot to retarget the First Major Resistance Level (R1) at $1,555 and the Thursday high of $1,559. An ETH return to $1,550 would signal a bullish afternoon session. However, moves through the US session will be data-dependent.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,579 and $1,600 would likely come into play. The Third Major Resistance Level (R3) sits at $1,623.

A fall through the pivot would bring the First Major Support Level (S1) at $1,511 into play. However, barring a data-fueled sell-off, ETH should avoid sub-$1,450. The Second Major Support Level (S2) at $1,491 should limit the downside.

The Third Major Support Level (S3) sits at $1,447.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,539. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA would support a breakout from R1 ($1,555) to target R2 ($1,579) and $1,600. However, a fall through the 50-day EMA ($1,539) would bring S1 ($1,511) into view.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.54% to $20,332. A range-bound morning saw BTC fall to an early low of $20,206 before rising to a high of $20,340.

Technical Indicators

BTC needs to avoid the $20,226 pivot to target the First Major Resistance Level (R1) at $20,401 and the Thursday high of $20,404. A BTC return to $20,300 would signal a possible breakout session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $20,578 would likely come into play. The Third Major Resistance Level (R3) sits at $20,930. BTC movement will hinge on US economic indicators.

A fall through the pivot would bring the First Major Support Level (S1) at $20,049 into play. Barring an extended sell-off, BTC should avoid sub-$19,750. The Second Major Support Level (S2) at $19,874 should limit the downside. However, the US Jobs Report could send BTC into another slide.

The Third Major Support Level (S3) sits at $19,522.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat at the 50-day EMA, currently at $20,342. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA to deliver bullish signals.

A breakout from the 50-day EMA ($20,342) would give the bulls a run at R1 ($20,401) and $20,500. However, a fall through the 100-day EMA ($20,126) would bring S1 ($20,049) and the 200-day EMA ($19,944) into view.