On Tuesday, Ethereum (ETH) rose 3.38% to end the day at $1,774. The news from Shapella and the broader crypto market prompted a recovery of losses starting Monday. Technical indicators turned bullish, putting $1,900 in sight.
Ethereum (ETH) was up 3.39% on Tuesday. Reversing a 3.38% drop on Monday, ETH ended the day at $1,774. Despite the bullish session, ETH failed to reach the $1,800 level for the second session in a row.
A mixed start to the day saw ETH fall to an early low of $1,702. Breaking away from the first major support level (S1) at $1,675, ETH rallied to an early afternoon high of $1,796. ETH broke above the first major resistance level (R1) at $1,769, to end the day at $1,774. Resistance at $1,800 capped the upside.
CFTC Classifies ETH as a Commodity to Support a Bullish Tuesday
The Commodity Futures Trading Commission (CFTC) was back in the news on Tuesday. CFTC Chairman Rostin Behnam spoke at a congressional hearing on Tuesday, stating that ETH is a commodity and not a security. Behnam labeled various cryptos as commodities, including LTC and BTC, and stablecoins, including BUSD.
Investors and crypto exchange platforms may be confused about the CFTC’s decision to file a lawsuit against Binance. Prior to the filing, markets viewed the CFTC as a more pragmatic regulator, one that would support growth and innovation. However, the CFTC’s classification of BTC, ETH, and LTC as commodities could expose other exchanges to CFTC action.
While the news of the CFTC’s lawsuit against Binance was negative for the market, the conflicting opinions of two crypto regulators on ETH could provide solace, and support a Ripple victory in the ongoing SEC vs. Ripple.
This afternoon, the Federal Reserve will face US lawmakers for a second day, as lawmakers grill the Fed on the collapse of Silicon Valley Bank and Signature Bank. With jitters in the banking sector easing, talk of a credit crunch could test buyers’ appetites.
There are no US economic indicators to distract investors. However, the Fed’s forward-looking guidance on monetary policy could move the dial.
Ethereum (ETH) Price Action – Technical Indicators
A range-bound start to the day saw ETH rally to an early high of $1,790, before pulling back.
ETH needs to avoid the $1,757 pivot, to target the first major resistance level (R1) at $1,813. A return to $1,800 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 $1851, and resistance at $1900. The third major resistance level (R3) sits at $1,945.
Ethereum has broken above the 50-day EMA, currently at $1,753. The 50-day EMA has broken away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, providing bullish signals.
A hold above the 50-day EMA ($1753) would support a break of R1 ($1813) to target R2 ($1851) and $1900. However, a drop through the 50-day EMA ($1,753) would give the bears a run at the 100-day EMA ($1,726) and S1 ($1,719). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
