On Saturday, Ethereum (ETH) fell 0.46% to end the day at $1,744. A quiet start to the weekend left ETH’s range limited as investors considered the events of the week. However, technical indicators remained bullish, leaving $2,000 in the offing.
Ethereum (ETH) fell 0.46% on Saturday. Following a 3.63% drop on Friday, ETH ended the day at $1,744. Despite the bearish session, ETH avoided sub-$1,700 for the eighth session in a row.
After a morning of range bound, ETH surged to a mid-afternoon high of $1,765. Missing the first major resistance level (R1) at $1,807, ETH fell to a late low of $1,715. Finding support at the first major support level (S1) at $1,712, ETH revisited the $1,745 level before pulling back.
Regulatory Uncertainty and Banking Sector Problems Leave ETH Flat
Investor jitters over the collapse of Deutsche Bank (DB) eased on Saturday. However, investors are likely to remain cautious in the coming weeks as the fallout from the Silicon Valley Bank and Signature Bank bankruptcies spread to Europe.
While ETH may provide an alternative option to traditional banking, the threat of a financial crisis would test investors’ resilience. Regulatory uncertainty could also affect the use of ETH and others as alternatives to fiat currency during the current banking crisis.
Increased regulatory scrutiny has left ETH below the $2,000 level. However, a Ripple victory in the SEC vs. Ripple would likely change investor sentiment.
This week, crypto-related news left ETH and the broader market on the defensive, with Binance and Coinbase (COIN) on the SEC’s radar.
ETH inflows gradually increased on Saturday. According to CryptoQuant, staking entries increased from 12,736 ETH on Friday, to 13,536 ETH on Saturday. Stake flows remained high, supporting the current upward trend in total value staked in the run-up to the Shapella hard fork.
Investors should spot a change in trends, with a downward trend possibly signaling an increase in disinterest requests upon completion of the Shapella upgrade.
Ethereum (ETH) Price Action – Technical Indicators
A range-bound start to the day saw ETH fall to an early low of $1,741 before rising to a high of $1,759.
ETH needs to avoid the $1,741 pivot, to target the first major resistance level (R1) at $1,768. A move through Saturday’s high of $1,765 would signal a breakout session. However, crypto news leads need to be crypto-friendly to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1,791, and resistance at $1,800. The third major resistance level (R3) sits at $1,841.
Ethereum broke above the 50-day EMA, currently at $1,754. The 50-day EMA has broken away from the 100-day EMA, with the 100-day EMA widening further from the 200-day EMA, providing bullish signals.
A hold above the 50-day EMA ($1754) would support a break of R1 ($1768) to target R2 ($1791) and $1800. However, a drop through the 50-day EMA ($1,754) would give the bears a run at S1 ($1,718) and the 100-day EMA ($1,715). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda