Market risk sentiment warms up before Christmas: Ethereum, gold, USD/JPY, and S&P 500 technical review

Under the background of the Bank of Japan’s rate hike landing and the easing of carry trade liquidation pressure, market risk appetite has significantly increased this week. The VIX and volatility indices have both declined, and commodities and Tech Stocks have both strengthened. The following is the technical analysis of major assets as of December 22.

Ether: Reclaiming the $3000 level, bottom structure gradually confirmed

Ether rose 1.44% on December 22, reaching a high of $3060, successfully reclaiming the psychological level of $3000. Notably, over the past month, Ether has repeatedly found support in the $2780-$2800 range, with a basic formation of a bottom pattern. According to the latest data, the current trading price of Ether is around $2.95K, with gains showing signs of convergence compared to earlier.

If Ether can hold above $3000, it may trigger a new rally, further challenging $3200, $3400, and even $3600. However, if it falls below the support at $2780, attention should be paid to the risk of continued decline since August.

Technical levels to watch:

• Support: 3000, 2800, 2600
• Resistance: 3200, 3400, 3600

Gold: Strong momentum after breaking through $4400, rebound target up to $4600

Gold surged over $80 intraday on December 22, breaking through the integer level of $4400 and rising further to a high of $4420, confirming the new upward trend initiated on November 5. The precious metal remains resilient amid a weakening dollar and geopolitical premium support.

If gold can stabilize above $4400, further upward rebound is expected, with potential challenges to $4500 and even $4620. The overall upward trend may continue into late January. However, if gold falls below $4300, caution is needed as further decline toward $4220 is possible.

Technical levels to watch:

• Support: 4400, 4300, 4220
• Resistance: 4500, 4620, 4770

USD/JPY: Staying above 157.0, upward momentum remains intact

USD/JPY maintained around 157.40 on December 22, with the intraday low at 157.23. The key point is that USD/JPY remains above 157.0, and the overall trend remains healthy, with prospects for continued rise. The Bank of Japan’s rate hike decision has passed, reducing short-term uncertainties, allowing the exchange rate to stabilize at high levels.

If USD/JPY can hold above 157.0 support, further gains toward 159.0 and even 162.0 are likely. However, a confirmed break below 157.0 could signal a return to support at 155.0.

Technical levels to watch:

• Support: 157.0, 155.0, 152.0
• Resistance: 159.0, 160.0, 162.0

S&P 500 Index: Correction phase ends, eyeing 7000 points

The S&P 500 index rose 0.88% on December 19 (Friday), reaching a high of 6840 points. Market sentiment has improved significantly, and the index is currently stable above the key level of 6790, reflecting a strong bullish sentiment.

If the S&P 500 can hold above 6790, further gains toward 6900 and even 7000 points are expected. Conversely, a break below 6790 could risk a decline toward 6600. Strong earnings reports from tech stocks (e.g., Micron Technology’s impressive Q1 earnings) provide solid support for the market.

Technical levels to watch:

• Support: 6800, 6600, 6450
• Resistance: 6900, 7000, 7320