On Wednesday, Bitcoin (BTC) and Ethereum (ETH) joined the broader market in positive territory, with BTC revisiting below $24,000. Economic data from China sparked a broad-based crypto rally, with Shapella positive ETH update. However, ETH and BTC both saw red numbers this morning.
Ethereum (ETH) was up 3.74% on Wednesday. Reversing a 1.71% drop since Tuesday, ETH ended the day at $1,665.
A bearish start to the day saw ETH drop to an early low of $1,595. Breaking away from the first major support level (S1) at $1,585, ETH rallied to an early afternoon high of $1,670. ETH broke above the first major resistance level (R1) at $1,636 and briefly broke through the second major resistance level (R2) at $1,668 before pulling back to end the day at $1,665.
On Wednesday, Bitcoin (BTC) rallied 2.44%. Reversing a 1.53% loss from Tuesday, BTC ended the day at $23,707. The bullish session supported a return of BTC to the $24,000 level for the first time in five sessions.
A mixed start to the day saw BTC fall to an early low of $23,036. Moving away from the first major support level (S1) at $22,934, BTC rallied to a late-morning high of $24,009. BTC broke above the first major resistance level (R1) at $23,483 and briefly through the second major resistance level (R2) at $23,823 before ending the day at $23,707.
This morning, investors responded to the aggressive talk and inflation numbers, sending BTC and ETH into the red.
Ethereum (ETH) Price Action – Technical Indicators
ETH needs to avoid the $1,643 pivot to target the first major resistance level (R1) at $1,692 and $1,700. A move through the morning high of $1,678 would signal a breakout session. However, the Shanghai update news and crypto news wires 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 $1,718 and resistance at $1,750. The third major resistance level (R3) sits at $1,793.
A hold above the 50-day EMA ($1,636) would support a break of R1 ($1,692) to target R2 ($1,718) and $1,750. However, a drop through the 50-day ($1,636) and 100-day ($1,632) EMAs would bring S1 ($1,617) into view. A drop through the 50-day EMA would send a bearish signal.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to move through the $23,574 pivot to target the first major resistance level (R1) at $24,132. A return to $24,000 would signal a breakout session. Crypto news wires and Fed talk should be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $24,557 and resistance at $25,000. The third major resistance level (R3) sits at $25,530.
A move through the 100-day ($23,513) and 50-day EMA ($23,570) would support a break of R1 ($24,132) to bring R2 ($24,557) and $25,000 into view. However, a drop through S1 ($23,159) would give the bears a run at the 200-day EMA ($22,982). A move through the 50-day EMA ($23,570) would send a bullish signal.
By Audy Castaneda
