- ETH and BTC witnessed a bullish Friday, with Bitcoin revisiting the $17K mark.
- United States economic signals triggered demand for the overall crypto market and the NASDAQ Index.
- Nonetheless, the bullishness couldn’t continue today as market players contemplated the recent statistics and Fed’s sentiment shift.
Ethereum and Bitcoin experienced a mixed early Saturday. Nonetheless, the plunge mitigated expectations of a less hawkish stance from the Federal and a soft landing. Meanwhile, bulls should prevent downsides to eye higher levels.
Ethereum gained 1.44% yesterday (Friday) to reverse Thursday’s 0.4% decline and closed the session at the $1,269 mark. That came after Ethereum declined to early afternoon lows of $1,234. After that, Ethereum plunged below the first massive foothold of $1,241 before soaring to the $1,277 evening high.
The upside saw Ethereum overpowering the first crucial resistance area at $1,261 before briefly surpassing the 2nd massive resistance of $1,270 to finalize the session at around $1,269.
NASDAQ Index and Less Hawkish Federal Bets Triggered Bullish Session
United States economic indicators triggered demand for risk assets yesterday. The ISM Non-Manufacturing PMI and December jobs data eased forecasts of a 50bp Federal rate hike next month (February).
December’s non-farm payrolls soared by 223K against November’s 256K. Meanwhile, wages increased slower, 0.3%, versus November’s 0.4%. The United States unemployment rate dropped to 3.5% from 3.6%, whereas the participation rate increased to 62.3% from 62.2%.
The Employment index dropped to 49.8 from 51.5, with the ISM Non-Manufacturing MPI plummeting to 49.6 from 56.5. Further, the Prices Index dipped to 67.6 from 70.
The chances of s 25bp Federal rate hike increased to 75.7% and 58.1 on Friday (FedWatchTool data), supporting risk assets. The S&P 500 and the NASDAQ Index jumped by 2.28% and 2.56%, respectively. Reports suggested that FOMC’s Bostic insinuated a 25bp rate increase in February, backing market sentiment toward Federal financial policy.
There was no data to offer direction today, leaving Ether under the influence of Federal policy expectations and cryptocurrency news wires. Though easing forecasts of a 50bp Federal hike is positive, crypto regulatory risks and fears of economic recession remain challenging.
ETH Price Action
Ethereum stood at $1,265 during this writing, following a 0.28% decline. Mixed early movements pushed ETH to $1,271 before dipping toward the $1,262 low. For now, Ether bulls should escape $1,260 to eye the first crucial resistance at $1,286.
Overcoming the $1,277 Friday peak would authorize bullishness for ETH, though crypto-friendly news remains essential for such an increase. Continued upward momentum would see Ether challenging the 2nd crucial hurdle at $1,303. Another obstacle stands near $1,346.
Dips beneath $1,260 would catalyze bearish actions toward the first robust foothold at $1,243. Nonetheless, excluding even-triggered crashes, the altcoin should avoid slumps below the second foothold at $1,217. ETH’s 3rd reliable support floor stands at around $1,174.
The Exponential Moving Averages signaled bullishness for Ether, with the leading alt swaying beyond the 50day EMA ($1,235). Meantime, Friday’s bullish cross saw the 50day EMA drifting from the 200day EMA, as the 100day EMA narrowed into the 200day EMA – presenting bullish signs.
An Ether hold beyond $1,241 (first massive support) and $1,235 (50day EMA) would catalyze upsurges toward the first resistance at $1,286 before targeting the $1,303 obstacle. Nonetheless, declines below the initial support ($1,226) would support bearish actions toward $1,235. Losing the $1,226 mark would authorize bearishness for Ethereum.