On Friday, Ethereum (ETH) fell 0.35%, to end the day below $1,500 for the second session in a row. The collapse of Silicon Valley Bank affected investor confidence, while US economic indicators cushioned the fall. Technical indicators remain bearish, with less than $1,350 in sight.

Ethereum (ETH) fell 0.35% on Friday. After rising 6.20% on Thursday, ETH ended the day at $1,432. ETH ended the day below $1,500 for the second time since January 13.

A bearish start to the day saw ETH drop to a low of $1,370 by late morning. ETH fell through the first major support level (S1) at $1,381 before rising to a late-afternoon high of $1,439. However, failing to reach the first major resistance level (R1) at $1,520, ETH pulled back to end the day in the red.

Shanghai Update Overshadowed by US Banking Sector Troubles

There were no updates on the delayed Shanghai update to distract investors from the US economic calendar and crypto news wires.

With little else for investors to consider, the all-important US Jobs Report attracted interest in the afternoon session. A larger-than-expected rise in nonfarm payrolls and a slower pace of wage growth generated mixed signals. While the US unemployment rate rose from 3.4% to 3.6%, the levels reflect tight labor market conditions, supporting a more hawkish Fed policy outlook.

However, the problems of the US banking sector weighed on ETH and the crypto market in general. On Friday, news broke that US regulators have shut down Silicon Valley Bank (SIVB), whose collapse came on the heels of news that Silvergate Bank was planning to liquidate.

On Thursday, the state of New York filed a lawsuit against KuCoin for violating securities laws by offering tokens, including ETH. The battle for the crypto market continues. This week, the CFTC Chairman called Ethereum a commodity, while SEC Chairman Gary Gensler insisted that all cryptocurrencies except bitcoin (BTC) are securities.

The contrasting views between regulators and legislators demonstrated the failures of US legislators and regulators to provide clear guidelines for crypto-market platforms and, more importantly, for retail investors. The disjointed views are bearish for ETH, leaving investors in limbo until a regulatory framework comes into effect.

Ethereum (ETH) Price Action – Technical Indicators

ETH needs to avoid a drop through R1 and the $1,414 pivot to re-target the second major resistance level (R2) at $1,483, and the morning high of $1,499. A return to $1,480 would signal a bullish session. However, the Shanghai update news and crypto news wires should support ETH to support a breakout.

In the event of a prolonged rally, the bulls would likely test the third major resistance level (R3) at $1,552.

Ethereum broke below the 50-day EMA, currently at $1,528. The 50-day EMA has pulled back from the 200-day EMA, and the 100-day EMA has turned back from the 200-day EMA, giving bearish signals.

A move through R2 ($1,482) would give the bulls another run at the 50-day EMA ($1,528). A break of the 50-day EMA would send a bullish signal. However, a failure to move through the 50-day EMA ($1,528) would leave the bears in the driver’s seat.

By Audy Castaneda


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