- Ethereum recorded bullish moves on Tuesday as Bitcoin revisited $17.5K for the initial time since 16 December.
- Market attitude toward United States inflation and expectations of soft economic landing backed riskier assets.
- Nevertheless, Ethereum witnessed red today as investors locked in profits following three optimistic sessions.
Tuesday’s optimistic moves saw ETH gaining 1.21% to extend Monday’s 2.33% surge to finalize the day near $1,336. As a result, the largest alt avoided the $1.3K territory for the initial time since 14 December. Meanwhile, earlier moves yesterday saw Ethereum dropping to $1,317 early lows.
ETH steered clear of the first massive support zone of $1,288 to climb to $1,347 late highs. Meanwhile, interaction with the first robust resistance of $1,349 saw Ether easing to close the session at around $1,336.
NASDAQ Index and Softer Inflation Anticipations Ensured Support
On Tuesday, the market stance toward the United States’ economic outlook and the Federal Reserve remained the primary point. Unfortunately, there weren’t economic signals to distract market participants, with Fed’s Powell maintaining silence on Federal financial policy.
The silence enabled investors to concentrate on Thursday’s (tomorrow) United States CPI data, which investors anticipate to come softer. Remember, softer inflation would mean a less aggressive Federal rate path, preventing hard economic landings.
Ethereum saw declines early today. The losses emerged after profit-booking that followed three successive bullish sessions. Without United States economic data to analyze today, the NASDAQ and FOMC staff chatter will influence markets during the afternoon session. The NASDAQ Mini dropped 4.25 points today morning. Meanwhile, the NASDAQ Index gained 1.01% on Tuesday.
Nonetheless, enthusiasts should watch cryptocurrency news wires for potential events that may trigger movements. Following the ETH merge, investors can expect market attention to gradually shift toward the Shanghai hardfork. Delays to an expected February test will likely pressure Ether.
ETH Price Action
While posting this blog, ETH traded near $1,329, following a minor 0.53% dip. Mixed movements had the crypto climbing to $1,342early highs before dipping to $1,327. According to technical indicators, keeping the pivot of $1,334 away would support movements toward the initial massive resistance at $1,350.
Regaining the $1,340 territory would authorize a bullish price action, though crypto-friendly FOMC chatter remains essential for such upsides. Continued uptrends may take ETH towards its second robust resistance of $1,365. After that, the coin will meet the 3rd obstacle near $1,396.
Meanwhile, a weakness around $1,334 (pivot) would lead to downward price moves. That would leave the initial massive foothold of $1,319 in play. Nevertheless, barring risk-off-catalyzed dips, Ethereum should escape the $1.3K vicinity. Ethereum’s 2nd massive foothold of $1,303 should prevent the decline. Nonetheless, the 3rd reliable support barrier stands at $1,272.
Exponential Moving Averages
Evaluating the Exponential Moving Averages (EMAs) and the 4hr candle chat confirms bullish signals. ETH swayed beyond the 50day EMA ($1.281). The 50day Exponential Moving Average drifted from the 100d EMA as the 100d EMA widened from the 200d EMA, demonstrating bullish signs.
Sustained actions beyond $1,319 (first reliable support) would trigger upsides toward the initial robust resistance of $1,359 before heading to the second massive hurdle near $1,365. Nonetheless, declines beneath $1,319 would see bears dominating. That would witness ETH slumping toward the second foothold of $1,303 and the 50day Exponential Moving Average ($1,281). Dips below this level would shift ETH’s sentiment.
Stay tuned for the latest cryptocurrency news.