Ethereum (ETH) rallied by 3.60% on Wednesday. Following a 1.21% gain on Tuesday, ETH ended the day at $1,642.
After a mixed morning session, ETH fell to an early evening low of $1,557. ETH briefly fell through First Major Support Level (S1) at $1,562 before rallying to a late high of $1,648. ETH broke through the First Major Resistance Level (R1) at $1,606 and the Second Major Resistance Level (R2) at $1628 to end the day at $1,642.
On Wednesday, bitcoin (BTC) rose by 2.54% following a 1.34% gain on Tuesday, BTC ended the day at $23,723. Despite the bullish session, BC failed to strike a new 2023 high.
After a range-bound morning, BTC slid to a pre-Fed Chair Powell press conference low of $22,757. BTC fell through the First Major Support Level (S1) at $22,811 before surging to a late high of $23,814. BTC broke through the First Major Resistance Level (R1) at $23,378 and the Second Major Resistance Level (R2) at $23,621 to end the day at $23,723.
Fed Chair Powell and the NASDAQ
On Wednesday, weaker-than-expected private sector PM numbers and ADP nonfarm employment change figures weighed on investor sentiment. Investor angst ahead of the heavily anticipated Fed Chair Powell press conference added to the bearish mood.
However, Fed Chair Powell delivered a market-friendly press conference, supporting a late broad-based crypto market rally. The NASDAQ Index rose by 2.00% in response.
Ethereum network news contributed to the ETH gain on Wednesday. The release of the first public withdrawal testnet, Zhejiang, drew interest. Ethereum users can simulate staked ETH withdrawals, a feature of the Shanghai hard fork.
For the day ahead, updates on Zhejiang testing will provide direction. However, US economic indicators will also draw interest, with US jobless claims and factory and core durable goods orders in focus.
Following the Fed Chair Powell press conference, investor sensitivity to US economic indicators will linger. A deterioration in labor market conditions and hints of a US recession would test investor appetite.
Ethereum (ETH) Price Action
At the time of writing, ETH was up 1.69% to $1,670. A bullish start to the day saw ETH rise from an early low of $1,640 to $1,698. ETH broke through the First Major Resistance Level (R1) at $1,674 before easing back
ETH needs to avoid a fall through the $1,616 pivot to retarget the First Major Resistance Level (R1) at $1,674 and the morning high of $1,698. Avoiding sub-$1,650 would signal a breakout session. However, economic indicators and Shanghai hard fork updates will have to 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 $1,707 and resistance at $1,750. The Third Major Resistance Level (R3) sits at $1,798. A fall through the pivot would bring the First Major Support Level (S1) at $1,583 into play. However, barring a broad-based crypto market sell-off, ETH should avoid sub-$1,550 and the Second Major Support Level (S2) at $1,525. The Third Major Support Level (S3) sits at $1,434.
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