On Monday, Ethereum (ETH) joined the broader market in negative territory, falling 3.38%, to end the day at $1,716. The news that the Commodity Futures Trading Commission sued Binance weighed on investor sentiment. Technical indicators turned more bearish, putting less than $1,650 in sight.
Ethereum (ETH) fell 3.38% on Monday. Reversing a 1.83% gain on Sunday, ETH ended the day at $1,716. The bearish session sent ETH below $1,700 for the first time since March 17.
A bullish start to the day saw ETH rally to an early high of $1,782. Missing the first major resistance level (R1) at $1,804, ETH fell to a mid-afternoon low of $1,688. ETH fell through the first major support level (S1) at $1,744, and briefly through the second major support level (S2) at $1,713, before ending the day at $1,716.
News of CFTC Filing Charges against Binance Weighed
On Monday, the Commodity Futures Trading Commission (CFTC) sent ETH and the broader crypto market into negative territory. The CFTC filed charges against Binance.
According to Monday’s court filing:
“Beginning no later than July 2019, and continuing through the present, Binance, under the direction and control of Zhao and with the voluntary and substantial assistance of Lim, has solicited and accepted orders, accepted ownership on margin, and operated a facility for training futures, options, swaps, and leveraged retail commodity transactions involving digital assets that are commodities including Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) for individuals in the United States.”
A move against Binance is likely to have occurred, following a letter from US lawmakers to Binance in early March. Notably, the filing preceded a hearing on Capitol Hill to investigate the reasons behind the collapse of Silicon Valley Bank and Signature Bank. Rising hopes of a Ripple victory in the SEC vs. Ripple provided late support as investors shrugged off fears of a banking sector crisis.
Binance and the SEC vs. Ripple will likely be the focal points for investors today. Following the CFTC move, progress towards a Ripple victory against the SEC would ease market tensions.
Ethereum (ETH) Price Action – Technical Indicators
ETH was down 0.06% at $1,715. A range-bound start to the day saw ETH rally to an early high of $1,728, before dipping into the red.
ETH needs to move through the $1,729 pivot to target the first major resistance level (R1) at $1,769, and Monday’s high of $1,782. A return to $1,750 would signal a breakout session. However, crypto news leads must be ETH-friendly to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1823, and resistance at $1850. The third major resistance level (R3) sits at $1,917.
Ethereum sat below the 100-day EMA, currently at $1,722. The 50-day EMA closed above the 100-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bearish signals.
A move through the 100-day EMA ($1,722) would support a break of the 50-day EMA ($1,751) and R1 ($1,769) to target R2 ($1,823) and $1,850. However, if it fails to move through the 50-day EMA ($1,751), the bears would have a run at the 200-day EMA ($1,677) and S1 ($1,675). A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda