Eth bulls take advantage of the Shanghai Hard Fork Chatter to target $1,400

On Tuesday, Bitcoin (BTC) gained 1.51%. After gaining 0.26% on Monday, BTC ended the day at $17,445. Notably, BTC ended the day at $17,000 for the third time since December 15th.

A mixed start to the day saw BTC drop to an early low of $17,155. Avoiding the first major support level (S1) at $17,072, BTC reached a late high of $17,506. However, when BTC rallied against the second major resistance level (R2) at $17,513, BTC pulled back again to end the day below $17,500.

Mild inflation expectations and the Nasdaq Index provided support

On Tuesday, market sentiment towards the Federal Reserve and the US economic outlook remained in focus. There were no economic indicators to distract investors, and Fed Chair Powell remained quiet on the Fed’s monetary policy. The silence has allowed investors to focus on tomorrow’s US CPI report, which investors expect to be softer.

Lower inflation would support the Fed’s softer rate path and prevent a hard landing.

But this morning, BTC and ETH were in the red. After three consecutive bullish sessions, profit-taking likely contributed to the early losses.

With no US economic indicators to consider today, FOMC members talk and the Nasdaq will influence the afternoon session. The NASDAQ mini index is down 4.25 points this morning. On Tuesday, the Nasdaq was up 1.01%.

However, investors should keep an eye on cryptocurrency news feeds for events that could move the dial. After the Ethereum merger, the focus of the market will gradually shift to the Shanghai hard fork. The expected February test delay could put pressure on ETH.

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