ETH Bulls to Target a Return to $1,300 on Softer US Inflation Numbers

Key Insights:

• On Monday, bitcoin (BTC) and ethereum (ETH) joined the broader crypto market in positive territory.
• Binance news and the NASDAQ Index delivered a mixed session ahead of today’s US CPI Report.
• This morning, investors took a more cautious footing ahead of the CPI Report that could decide the magnitude of the December Fed rate hike.

Ethereum (ETH) rose by 1.03% on Monday. Reversing a 0.32% loss from Sunday, ETH ended the day at $1,279. ETH fell short of $1,300 for the seventh consecutive session.

A bearish start to the day saw ETH slide to an early morning low of $1,240. ETH fell through the First Major Support Level (S1) at $1,251. However, steering clear of the Second Major Support Level (S2) at $1,239, ETH rose to a late high of $1,279. Coming within range of the First Major Resistance Level (R1) at $1,280, ETH eased back to end the day at $1,276.

On Monday, bitcoin (BTC) rose by 0.70%. Reversing a 0.13% loss from Sunday, BTC ended the day at $17,229. Notably, BTC revisited sub-$17,000 for the first time in four sessions while ending a three-day losing streak.

A bearish start to the day saw BTC slide to an early low of $16,879. BTC fell through the First Major Support Level (S1) at $16,967 before finding support. Recovering from the morning loss, BTC rallied to a final-hour high of $17,263. However, coming up short of the First Major Resistance Level (R1) at $17,378, BTC eased back to end the day at $17,229.

NASDAQ Index Delivered Support Ahead of the US CPI Report

On Monday, Binance news led BTC and ETH into the deep red. Reports of irregular account behavior and US authorities planning on filing financial crime charges against Binance weighed on investor sentiment.

However, a bullish NASDAQ Index and S&P500 session reversed BTC and ETH losses from the morning. Hopes of softer US inflation numbers drove demand for riskier assets in the second half of the day.

This morning, BTC and ETH kicked off the day in the red, with investors turning their attention to today’s US CPI Report. Hotter-than-expected numbers could reverse bets of a December Fed pivot and send riskier assets into the deep red.

Investors will need to monitor updates on Binance, with criminal charges likely to have a material impact on the broader crypto market.

While Binance will draw attention, the arrest of former FTX CEO Sam Bankman-Fried grabbed the headlines. The arrest had a muted impact on investor sentiment.

SBF could spook the markets in testimony on Capitol Hill. SBF was due to give testimony remotely to lawmakers on Capitol Hill today. The former FTX CEO could implicate regulators or divulge information that could put the spotlight on other crypto platforms.

Today, Binance news updates, SBF comments, and the US CPI Report will likely move the dial. The NASDAQ mini was down 21.75 points this morning, leaving BTC and ETH in the red.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.22% to $1,273. A mixed morning saw ETH rise to an early high of $1,278 before falling to a low of $1,266.

Technical Indicators

ETH needs to avoid the $1,265 pivot to target the First Major Resistance Level (R1) at $1,290 and $1,300. A move through the Monday high of $1,279 would signal a bullish afternoon session.

In the event of an extended rally, the bulls would likely take a run at the Second Major Resistance level (R2) at $1,304. The Third Major Resistance Level (R2) sits at $1,343.

A fall through the pivot would bring the First Major Support Level (S1) at $1,251 into play. However, barring an event-driven sell-off, ETH should avoid sub-$1,240 and the Second Major Support Level (S2) at $1,226. The Third Major Support Level (S3) sits at $1,187.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 200-day EMA, currently at $1,271. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A hold above the 200-day EMA ($1,271) would support a move through R1 ($1,290) to bring $1,300 and R2 ($1,304) into play. However, a fall through the 50-day ($1,262) and 100-day ($1,256) EMAs would bring S1 ($1,251) and Monday’s low of $1,240 into view.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.20% to $17,194. A mixed start to the day saw BTC rise to an early high of $17,253 before falling to a low of $17,146.

Technical Indicators

BTC needs to avoid the $17,124 pivot to target the First Major Resistance Level (R1) at $17,368. A BTC move through the Monday high of $17,263 would signal a bullish session.

In the event of an extended rally, BTC would likely break out from the Second Major Resistance Level (R2) at $17,508 to bring $18,000 into view. The Third Major Resistance Level (R3) sits at $17,892.

A fall through the pivot would bring the First Major Support Level (S1) at $16,984 into play. Barring an extended sell-off, BTC should avoid sub-$16,500. The Second Major Support Level (S2) at $16,740 should limit the downside. The Third Major Support Level (S3) sits at $16,356.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, BTC sat above the 100-day EMA, currently at $17,015. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A move through the 200-day ($17,282) would support a breakout from R1 ($17,368) to target R2 ($17,508). However, a fall through the 50-day EMA ($17,064) would bring the 100-day EMA ($17,015) and S1 ($16,984) into view.