Christmas season market surge: Can Ethereum continue its rally? A comprehensive scan of S&P, Japanese Yen, and gold

Market Background: Risk Sentiment Turns Optimistic

Following the implementation of the Bank of Japan’s rate hike, the pressure to close “carry trade” positions has significantly eased. Coupled with Micron Technology delivering impressive quarterly results, investors’ risk appetite has clearly increased. The VIX fear index and the MOVE index both declined, providing upward momentum for various asset classes. On the eve of Christmas, this rebound has attracted particular attention.

Ethereum: Regained $3000, Can the Rally Continue?

Ethereum rose 1.44% on Monday (December 22), reaching a high of $3,060, re-establishing the $3,000 level. According to the latest data, the current Ethereum price has stabilized around $3.14K, with a positive upward trend.

Notably, Ethereum has repeatedly found support in the $2780-$2800 range over the past month, establishing a short-term bottom pattern. If it can hold above $3000, further rebound attempts toward $3200 and even $3400-$3600 are possible. However, a drop below $2780 would raise concerns about the re-emergence of the downtrend since August.

Ethereum Technical Levels:

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

S&P 500 Index: Breakthrough of Bull-Bear Boundary, 7000 Points Expected?

The S&P 500 index gained 0.88% last Friday (December 19), reaching a high of 6840 points. The key signal is that the index has maintained above the critical bull-bear boundary at 6790 points, indicating strong bullish sentiment.

If the index can stay above 6790, further rebound attempts toward 6900 and even surpassing 7000 points are likely. Conversely, a fall below 6790 would raise the risk of testing 6600 support.

S&P 500 Technical Levels:

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

USD/JPY: New High Imminent? Key Level at 4600 Yen Worth Watching

USD/JPY traded around 157.40 on Monday (December 22), with a low of 157.23. Notably, the pair has stabilized above 157.0, maintaining a healthy upward trend.

If USD/JPY remains above 157.0, it could continue rising toward 159.0 and even 162.0. As the market evolves, high levels around 4600 yen are worth close attention. However, a decisive break below 157.0 would pose a risk of retreating to test the 155.0 support.

USD/JPY Technical Levels:

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

Gold: $4400 Confirmed, Significant Upside Potential

Gold surged over $80 on Monday (December 22), breaking above $4400 and challenging the high of $4420, strongly confirming a new rally since November 5.

If gold can hold above $4400, further rebound attempts toward $4500 and even $4620 are expected. The overall upward momentum may continue into late January. This strong performance has been driven by safe-haven demand and central bank policies.

Gold Technical Levels:

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

Summary: Ahead of Christmas, multiple assets are showing a rally, with gold, Ethereum, and the S&P 500 all demonstrating strength. Traders should focus on key technical levels across assets and monitor currency pairs like USD/JPY to prepare for upcoming market movements.