ETH Bulls Eye a Rebound and a Run at $1,250 While BTC Goes Sideways

Key Insights:

• Bitcoin (BTC) and ethereum (ETH) had mixed fortunes on Thursday, with ETH extending its winning streak to three sessions.
• Network updates and easing FTX contagion risk delivered ETH price support.
• However, it has been a bearish morning, with investors locking in profits from the recent bullish sessions this week.

Ethereum (ETH) rose by 1.60% on Thursday. Following a 4.04% rally on Wednesday, ETH ended the day at $1,203. ETH ended the day at $1,200 for the first time in five sessions.

A mixed morning saw ETH fall to an early low of $1,179. Steering clear of the First Major Support Level (S1) at $1,143, ETH rallied to a mid-morning high of $1,216. ETH broke through the First Major Resistance Level (R1) at $1,207 before sliding back to sub-$1,190.

However, ETH found late support to wrap up the day at $1,206 and extend the winning streak to three sessions.

On Thursday, bitcoin (BTC) slipped by 0.04%. Partially reversing a 2.44% gain from Wednesday, BTC ended the day at $16,606. Notably, BTC avoided sub-$16,000 for the second consecutive session.

A mixed start to the day saw BTC rise to an early morning high of $16,804. Coming up against the First Major Resistance Level (R1) at $16,807, BTC fell to an early afternoon low of $16,463. Steering clear of the First Major Support Level (S1) at $16,293, BTC revisited $16,669 before falling back into the red.

Ethereum network updates delivered ETH price support on Thursday. On Thursday, the Ethereum Foundation announced the next set of post-Merge and transition to PoS upgrades.

Set to take place in H2 2023, a feature of the Shanghai hard fork will be the Beacon Chain Staked Ether (ETH). The hard fork will allow users with pre-Merge-staked ETH to access the tokens and rewards.

However, uncertainty over the timing of the hard fork and when stakers can withdraw staked ETH raised concerns.

FTX contagion risk also eased on Thursday, with debtors busy locating assets that could further soften the blow to creditors. On Thursday, Binance CEO CZ pledged $1 billion for FTX-impacted crypto firms was market positive. In an interview with Bloomberg TV, CZ also said that Binance would make another bid for Voyager Digital.

However, bearish sentiment returned this morning. With no crypto news to trigger the pullback, investors likely locked in profits from the week. Uncertainty remains over the full extent of the fallout from the FTX collapse. The lack of news could support a rebound later in the session.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 1.48% to $1,185.

A bearish start to the day saw ETH fall from an early high of $1,204 to a low of $1,170. ETH fell through the First Major Support Level (S1) at $1,183 before finding support.

Technical Indicators

ETH needs to move through the $1,199 pivot to target the First Major Resistance Level (R1) at $1,220. An ETH move through the Thursday high of $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 $1,236 and resistance at $1,250. The Third Major Resistance Level (R3) sits at $1,273.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,183 in play. However, barring an extended afternoon sell-off, ETH should avoid sub-$1,150. The Second Major Support Level (S2) at $1,162 should limit the downside. The Third Major Support Level sits at $1,125.

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 50-day EMA, currently at $1,187. The 50-day EMA fell back from 200-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($1,187) would support a breakout from R1 ($1,220) to bring R2 ($1,236) and $1,250 into play. However, failure to move through the 50-day EMA would leave ETH under pressure.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.86% to $16,464.

A bearish start to the day saw BTC fall from an early high of $16,617 to a low of $16,354. BTC fell through the First Major Support Level (S1) at $16,445 before finding support.

Technical Indicators

BTC needs to move through the $16,624 pivot to target the First Major Resistance Level (R1) at $16,786 and the Thursday high of $16,804. A return to $16,800 would signal a bullish session. However, FTX-linked updates 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 $16,965 and resistance at $17,000. The Third Major Resistance Level (R3) sits at $17,306.

Failure to move through the pivot would leave the First Major Support Level (S1) at $16,445 in play. Barring another extended sell-off, BTC should avoid sub-$16,000. The Second Major Support Level (S2) at $16,283 should limit the downside. The Third Major Support Level (S3) sits at $15,942.

However, negative FTX-related news could send BTC to sub-$16,000.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $16,547. 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 breakout from the 50-day EMA ($16,547) would support a move through R1 ($16,786) to target R2 ($16,965) and $17,000. However, a failure to move through the 50-day EMA ($16,547) would leave S1 ($16,445) in play.