On Friday, Bitcoin (BTC) and Ethereum (ETH) joined the broader market in negative territory, with BTC dipping below $22,000. A bullish NASDAQ Composite Index failed to provide support, as investors responded to the latest on Silvergate Bank. The pair remained under pressure this morning, with the Silvergate Bank saga likely to dominate the crypto news wires.
Ethereum (ETH) fell 4.73% on Friday. Following a 1.02% loss on Thursday, ETH ended the day at $1,570.
A mixed start to the day saw ETH rally to an early morning high of $1,649 before pulling back. Failing to reach the first major resistance level (R1) at $1,678, ETH fell to a late low of $1,548. ETH fell through the first major support level (S1) at $1,619, as well as the second major support level (S2) at $1,589, to end the day at $1,570.
On Friday, Bitcoin (BTC) also fell 4.73%. Following a 0.99% drop on Thursday, BTC ended the day at $22,362. The bearish session saw BTC revise below $22,000 before finding support.
A mixed start to the day saw BTC rally as high as $23,482 in the first hour. However, failing to reach the first major resistance level (R1) at $23,780, BTC fell to a morning low of $21,968. BTC fell through major support levels before moving to the third major support level (S3) at $22,302 to end the day at $22,362.
Silvergate Bank News, as well as the SEC and a US Lawmaker’s Talk, Sink the Market
Amid increasing scrutiny from the SEC and US lawmakers, fears of a Silvergate Bank collapse sent BTC and ETH into a fiery red. News of major cryptocurrency exchanges, including Coinbase, Crypto.com, Paxos, and Bitstamp, severing ties with the crypto-friendly bank, fueled selling pressure.
The decision to cut ties came in response to Silvergate Bank delaying the filing of its annual reports on Wednesday. Increased scrutiny from US lawmakers on Binance, as well as news of US lawmakers targeting Bitcoin mining, also weighed on investor sentiment.
Ethereum (ETH) Price Action – Technical Indicators
ETH needs to move through the $1,589 pivot to target the first major resistance level (R1) at $1,630 and $1,650. A return to $1,600 would signal a breakout 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 second major resistance level (R2) at $1,690 and resistance at $1,700. The third major resistance level (R3) sits at $1,791.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. Ethereum broke below the 200-day EMA, currently at $1,604. After the bearish cross on Friday, the 50-day EMA pulled back from the 100-day EMA, while the 100-day EMA turned down to the 200-day EMA, providing bearish signals.
A move through the 200-day EMA ($1,604) would give bulls a run on the 50-day EMA ($1,621) and 100-day EMA ($1,625) and R1 ($1,630). However, if the 200-day EMA is not broken, the major support levels will still be in play. A move of ETH through the 50-day EMA ($1,621) would send a bullish signal.
By Audy Castaneda
