Christmas market kicks off: Ethereum reaches $3060, gold and silver along with US stocks form a double rally pattern

Market risk appetite has significantly increased, easing the pressure on carry trades to close positions, and corporate earnings reports are impressive, leading to a multi-asset rally. In the current market, cryptocurrencies and traditional assets are resonating, with investor sentiment markedly improving. Both the VIX and MOVE indices are declining, indicating a convergence of downside risks.

Ethereum: Approaching $3000 Recovery, Rebound Space to Open

Ethereum performed strongly on December 22, with intraday gains of 1.44%, reaching a high of $3060 and successfully reclaiming the $3000 level. Although current prices are below historical highs, the repeated testing of the $2780-2800 support zone over the past month has essentially completed the bottom structure, and a new upward cycle may be underway from a technical perspective.

If Ethereum can hold above $3000, it is expected to challenge the $3200 to $3400 range, with further targets at $3600. However, caution is advised: a drop below $2780 could extend the downtrend from August, so investors should set risk alerts in advance.

Key Levels

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

Gold: Holding at $4400, Nears $4500-$4620

Gold continues its strong momentum, surging over $80 intraday on December 22, breaking through $4400 and reaching a new high of $4420, further confirming the vitality of the rally since November 5. The improved market risk appetite has not diminished the appeal of safe-haven assets but has instead strengthened the demand for gold.

If gold can stabilize above $4400, it may further rebound to challenge $4500, with an extreme possibility of reaching $4620. The overall upward trend is expected to continue into late January next year. Caution: a fall below $4300 would warrant alertness for further decline.

Key Levels

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

USD/JPY: Building a Base at 157.0, Post-BOJ Rate Hike Trend Remains Steady

USD/JPY remained range-bound near 157.40 on December 22, with a low of 157.23. After the BOJ rate hike, the risk of carry trade unwinding has been alleviated, and the upward trend of USD/JPY has been reinforced. The current exchange rate stays above 157.0, with a good technical outlook, and the uptrend remains intact.

If USD/JPY stays above 157.0, it may further rebound to challenge 159.0, with a further target of 162.0, corresponding to the purchasing power of 4600 yen. Conversely, a decisive break below 157.0 could signal a return to test 155.0.

Key Levels

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

S&P 500 Index: Key Support at 6790 Confirmed, Targeting 7000 Points

The S&P 500 index rose 0.88% last Friday (December 19), with a high of 6840 points intraday. The index has now established itself above the key dividing line at 6790 points, indicating strong bullish sentiment and robust demand for risk assets.

If the S&P 500 can hold above the 6790 support, it is likely to rebound further toward 6900, aiming for 7000. However, a breakdown below 6790 could signal further downside, with 6600 becoming a new support target.

Key Levels

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

Market Summary: Ahead of Christmas, multi-asset performance points to rising risk appetite. Gold has broken new highs, Ethereum has recovered key levels, USD/JPY trend remains upward, and the S&P 500 holds its critical support. The overall pattern shows a rally across assets. Investors should pay close attention to key support levels; once resistance levels are broken, further rebound potential is promising.