On Sunday, Ethereum (ETH) joined the broader market in positive territory, rising 1.25%, to end the day at $1,786. The news that USB AG has agreed to acquire Credit Suisse Group AG supported a bullish end of the week. Technical indicators remained bullish, leaving $2,000 in sight.
Ethereum (ETH) was up 1.25% on Sunday. Partially reversing a 1.67% loss on Saturday, ETH ended the week up 12.19% at $1,786.
A mixed start to the day saw ETH drop to an early low of $1,763 before making a move. Breaking away from the first major support level (S1) at $1,729, ETH rallied to an early overnight high of $1,847. ETH broke above the first major resistance level (R1) at $1,822, before pulling back to end the day at $1,786.
UBS Agreement to Acquire Credit Suisse Bank Delivers a Bullish Sunday
On Sunday, fears of a deepening banking crisis were allayed by the news that UBS AG (UBS) agreed to acquire Credit Suisse Group AG (CS).
Investor relief was evident, with ETH hitting a fresh 2023 high of $1,847, before pulling back. However, while the Swiss government may have averted a catastrophe, nervousness in the banking sector is likely to persist in the near term. Assurances of government and central bank action to avoid a banking crisis should ease fears of a global financial crisis.
There were no updates on the Shapella update to distract investors on Sunday. However, ETH staking entries fell despite the bullish session.
Following UBS’s deal to acquire Credit Suisse, investors should continue to watch for bank-related news that could turn the tide. ETH and the crypto market in general showed resistance to the adverse events of the last two weeks. However, the threat of a global financial crisis would probably test the most resilient investor.
News related to the Shapella update, as well as regulatory and lawmaker activity, will also move the dial.
Ethereum (ETH) Price Action – Technical Indicators
ETH was down 0.34% at $1,780. A mixed start to the day saw ETH rally to an early high of $1,791, before falling to a low of $1,767.
ETH needs to move through the $1,799 pivot to target the first major resistance level (R1) at $1,834, and the Sunday high of $1,847. A return to $1,800 would signal a breakout session. However, Shapella upgrade news, as well as the crypto news wires, should 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 $1883, and resistance at $1900. The third major resistance level (R3) sits at $1,967.
Ethereum broke above the 50-day EMA, currently at $1,704. The 50-day EMA has broken further 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 major support levels and the 50-day EMA ($1,704) would support a break of R1 ($1,834) to target R2 ($1,883) and $1,900. However, a drop-through S1 ($1,750) would give bears a run on S2 ($1,715) and the 50-day ($1,704). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
