It was a bearish session on Sunday for Ethereum (ETH). Fed fear and US regulatory risk continued to weigh on investor confidence.
Ethereum (ETH) fell 1.56% on Sunday. Partially reversing a 1.72% gain on Saturday, ETH ended the week down 7.00% at $1,515. ETH revisited below $1,500 for the second time since January 14.
After a morning of range bound, ETH rose to a high of $1,548 by late afternoon. Failing to reach the first major resistance level (R1) at $1,554, ETH fell to a late low of $1,494. ETH fell through the first major support level (S1) at $1515, before ending the day at $1515.
Ethereum Hard Fork Overshadowed by the Fed and SEC
On Sunday, market sentiment towards the latest SEC regulatory moves in the digital asset space continued to weigh. With the SEC targeting cryptocurrency staking services, increased regulatory uncertainty will continue to be a hurdle until an appropriate regulatory framework is put in place.
Fed Fear added to bearish sentiment as investors await US CPI Report. A pick up in US inflation pressure would support a more aggressive policy outlook and an interest rate spike above 5%.
The bearish sentiment overshadowed the hard news from Ethereum Shanghai. On Friday, Ethereum announced the second round of testing ETH withdrawals staked. Today, investors should continue to monitor the crypto news wires. While the Shanghai hard fork updates will provide guidance, SEC activity and FOMC members’ talks are likely to draw more interest.
With tomorrow’s CPI report in the spotlight, the NASDAQ Composite Index is expected to influence the afternoon session.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.24% to $1,519. On a mixed morning, ETH rose to an initial high of $1,525 before falling to a low of $1,497.
ETH needs to avoid a drop through the $1,519 pivot to target the first major resistance level (R1) at $1,544, and Sunday’s high of $1,548. A return to $1,550 would signal a breakout session. However, updates from the Shanghai hard fork and crypto news leads should support ETH to support a breakout.
A drop through the pivot would bring the first major support level (S1) into play at $1,490. However, barring another crypto market sell-off, ETH should avoid less than $1,450. The second major support level (S2) at $1,465 should cap the downside. The third major support level (S3) sits at $1,411.
A move through R1 ($1,544) and the 200-day EMA (1,545) would give the bulls a run to R2 ($1,573) and the 50-day EMA ($1,575). However, a failure to move through the 200 day EMA ($1,545) would leave S1 ($1,490) in the offing. A move through the 50 day EMA would send a bullish signal.
By Audy Castaneda
