It was a bullish Saturday session for Ethereum (ETH. Regulatory risk and fear of the Fed limited upside potential.
After a morning of range bound, ETH fell to a low of $1,505 by late afternoon. Pulling away from the first major support level (S1) at $1,484, ETH rallied to a late high of $1,544. Being range bound from the first major resistance level (R1) at $1,548, ETH pulled back to end the session at $1,539.
On Saturday, bitcoin (BTC) rose 1.04%. Reversing a 0.73% loss from Saturday, BTC ended the day at $21,865, below $22,000 for the third session in a row.
Bullish Saturday Session and Fed Fears
A mixed start to the day saw BTC fall to an early low of $21,614. Moving away from the first major support level (S1) at $21,448, BTC surged to a last-hour high of $21,907. BTC briefly broke above the first major resistance level (R1) at $21,885, before pulling back to end the session at $21,865.
On Saturday, regulatory risk and Fed fears continued to test buyers’ appetites. Despite the bullish session, ETH failed to reach $1,550 and BTC failed to recapture the $22,000 level.
Fed Fear remains another hurdle for investors to tackle. On Tuesday, the US CPI Report could dictate the Fed’s near-term monetary policy. The January jobs report shifted sentiment to a more hawkish outlook, with Fed talk pointing to a top interest rate above 5%. Higher for longer would be bearish.
Ethereum (ETH) Price Action: Technical Indicators
ETH was down 0.50% at $1,531. On a mixed morning, ETH rose to an initial high of $1,540 before falling to a low of $1,529.
ETH needs to avoid a drop through the $1,529 pivot to target the first major resistance level (R1) at $1,554. A return to $1,550 would signal a breakout session. However, updates from the Shanghai hard fork and crypto news leads should support ETH to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1,568 and resistance at $1,600. The third major resistance level (R3) sits at $1,607.
A drop through the pivot would bring the first major support level (S1) into play at $1,515. However, barring another crypto market sell-off, ETH should avoid less than $1,490. The second major support level (S2) at $1,490 should cap the downside. The third major support level (S3) sits at $1,451.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. Ethereum broke below the 200-day EMA, currently at $1,546. After a bearish crossover on Saturday, the 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, providing bearish signals.
A move through the 200-day EMA (1,546) would support a break of R1 ($1,554) to give the bulls a run into R2 ($1,568) and the 50-day EMA ($1,589). However, a failure to move through the 200-day EMA ($1,546) would leave S1 ($1,515) and lower support levels at $1,500 in sight. A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
