ETH bulls need to avoid below $1,500 to target $1,700 on FTX Sentiment

However, after finding support in the afternoon, ETH broke through R2 to end the day at $1,550.

On Saturday, Bitcoin (BTC) gained 5.20%. After breaking 5.70% on Friday, BTC ended the day at $20,966. It should be noted that BTC visited $10,000 for the first time since November 7, extending its winning streak to seven sessions, its longest winning streak since March 2022.

The bullish first hour saw BTC climb from $19,897 to $21,378 before retreating. BTC broke the first major resistance level (R1) at $20,378 and the second major resistance level (R2) at $20,827. However, the pullback saw BTC fall briefly during R2 and R1 before ending the day at $20,966.

Easier FTX contagion risks and Fed policy bets provided support

After a bullish Friday session, a decrease in FTX infection risk provided the start of the breakout for the Saturday session. Reports that FTX holds $5 billion in cash and liquid assets and $4.6 billion in non-strategic assets has reduced the risk of another FTX-related crypto platform going under.

While it may take some time for FTX to make full creditors, the latest figures suggest that losses from FTX’s collapse may be minimal.

Market sentiment towards the Federal Reserve’s monetary policy and the US economic outlook was also bullish. The latest US economic indicators fueled bets for a 25 basis point rate hike in February. A less aggressive Fed rate path would reduce the risk of a hard landing.

It was a bearish start to the Sunday session. After a seven-day winning streak, investors are likely sitting in earnings before considering their next move. Indicators and tailwinds support further price gains. However, the SEC v Ripple case and regulatory risks remain a headwind.

A loss of Ripple to the SEC and a change in the regulatory landscape stifling growth and innovation would be negative for cryptocurrencies.

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