Pre-Christmas Market Rebound: Can Ethereum Continue Its Rally? Multi-Asset Technical Analysis

Market risk sentiment has clearly warmed up. As the Bank of Japan’s rate hike policy takes effect, the pressure to unwind “carry trades” has eased. Coupled with Micron Technology’s strong quarterly earnings, investors’ risk appetite has significantly increased. The VIX fear index and the MOVE index both declined, precious metals continued to heat up, and crypto assets also迎來 a rebound window.

Ethereum: Regaining the $3000 Level, Can It Start an Uptrend?

Ethereum rose 1.44% in a single day on December 22, reaching a high of $3060, successfully reclaiming the psychological threshold of $3000. It is important to note that over the past month, Ethereum repeatedly tested the $2780-$2800 zone, each time receiving support, indicating a short-term bottom formation and the potential start of a new rebound. According to the latest data, Ethereum’s current price is $2.91K, indicating ongoing consolidation in the bottom area.

If Ethereum can hold above $3000, it may further challenge $3200 to $3400, and even attempt to reach the $3600 high. However, investors should also beware of downside risks; if it falls below $2780, the downtrend since August may continue.

Key levels: Support at 3000, 2800, 2600; Resistance at 3200, 3400, 3600

S&P 500 Index: Pause in Correction, 7000 Points as New Target

The S&P 500 rose 0.88% on December 19, reaching a high of 6840 points intraday. It is noteworthy that the index remains above the key support level of 6790 points, reflecting strong buying momentum in the market.

If the index can hold above 6790, further rebound towards 6900 and even 7000 points is expected. However, if it ultimately breaks below the 6790 support, there is a risk of further decline toward 6600.

Key levels: Support at 6800, 6600, 6450; Resistance at 6900, 7000, 7320

USD/JPY: 157.0 as a Critical Defense Line, 160 Level Expected

USD/JPY maintained consolidation around 157.40 on December 22, with the intraday low at 157.23. Notably, USD/JPY successfully stayed above 157.0, keeping the overall upward trend intact, with room for further gains.

If USD/JPY remains above 157.0, it may further rebound to 159.0, and even challenge 160.0 and 162.0 levels. However, a confirmed break below 157.0 could trigger a re-test of 155.0, with yen appreciation pressures re-emerging. The 3400 yen conversion benchmark will be a key focus for investors.

Key levels: Support at 157.0, 155.0, 152.0; Resistance at 159.0, 160.0, 162.0

Gold: Breakthrough of 4400 Opens Up Further Upside

Gold surged over $80 intraday on December 22, successfully breaking above the psychological level of $4400, reaching a high of $4420, further confirming the new rally launched since November 5.

If gold can hold above $4400, it may further rebound towards $4500 and even $4620. The overall upward momentum is expected to continue into late January. However, investors should also monitor the support strength at $4300.

Key levels: Support at 4400, 4300, 4220; Resistance at 4500, 4620, 4770

Market Summary: Ahead of Christmas, both risk assets and safe-haven assets are presenting upward opportunities, with multiple assets showing positive technical signals. However, investors should be cautious, as market sentiment volatility still poses risks of support level breaches across various assets. It is recommended to set stop-loss points and manage risk exposure.