ETH and a Look at $1,800 Shanghai Hard Fork Update Dependent

The Day Ahead

Investors should monitor the crypto news wires for SEC v Ripple, FTX, Genesis, and Silvergate Bank updates. However, SEC activity and US lawmaker chatter will likely remain the focal points for investors.

For Ethereum, developer updates from testing the Shapella testnet will influence. Reports of bugs or a possible delay to the anticipated Shanghai hard fork in March would be ETH price negative.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.18% to $1,695. A mixed morning saw ETH fall to an early low of $1,690 before rising to a high of $1,710. The First Major Resistance Level (R1) at $1,711 capped the upside.

Technical Indicators

ETH needs to avoid a fall through the $1,695 pivot to retarget the First Major Resistance Level (R1) at $1,711 and the Saturday high of $1,714. A move through R1 would signal a breakout session. However, Shanghai hard fork updates and the crypto news wires should be ETH-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,729 and resistance at $1,750. The Third Major Resistance Level (R3) sits at $1,763.

A fall through the pivot would bring the First Major Support Level (S1) at $1,677 into play. However, barring another broad-based crypto market sell-off, ETH should avoid sub-$1,650. The Second Major Support Level (S2) at $1,661 should limit the downside. The Third Major Support Level (S3) sits at $1,627.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,632. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($1,632) would support a breakout from R1 ($1,711) to target R2 ($1,729) and $1,750. However, a fall through S1 ($1,677) would give the bears a run at S2 ($1,661) and the 50-day ($1,632). A fall through the 50-day EMA would send a bearish signal.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 0.04% to $24,624. A mixed morning saw BTC rise to an early high of $24,839 before easing back.

Technical Indicators

BTC needs to move through the $24,654 pivot to target the First Major Resistance Level (R1) at $24,857. However, a return to $25,000 would signal a breakout session. The crypto news wires need to be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $25,082 and the Thursday high of $25,234. The Third Major Resistance Level (R3) sits at $25,510.

Failure to move through the pivot would leave the First Major Support Level (S1) at $24,429 in play. However, barring a crypto event-fueled crypto sell-off, BTC should avoid sub-$24,000. The Second Major Support Level (S2) at $24,226 should limit the downside.

The Third Major Support Level (S3) sits at $23,798.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. BTC sat above the 50-day EMA ($23,498). The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($23,498) would support a breakout from R1 ($24,857) to target R2 ($25,082). However, a fall through S1 ($24,429) would give the bears a run at S2 ($24,226). Barring a crypto event, BTC should avoid the 50-day EMA ($23,498).