On Saturday, Ethereum (ETH) joined the broader crypto market in the red, falling 1.67% to end the day at $1,764. The risk of bank contagion weighed on investor sentiment, as investors digested the latest news related to Credit Suisse. However, technical indicators remained bullish, leaving $2,000 in sight.
Ethereum (ETH) fell 1.67% on Saturday. Partially reversing a 6.98% loss on Friday, ETH ended the day at $1,764. Despite the bearish session, ETH avoided sub-$1,700 for the first time since September 2022.
After a choppy start to the day, ETH rose to a midday high of $1,846 before pulling back. Facing the first major resistance level (R1) at $1,843, ETH fell to a late-afternoon low of $1,753. Breaking away from the first major support level (S1) at $1,705, however, ETH revisited the $1,800 level before dipping back into negative territory.
Swiss Banking Sector Troubles Led Participation Inflows and ETH Downside
There were no further updates from Ethereum developers on the Shapella upgrade to sway investor sentiment ahead of the Shapella upgrade target date of April 12. However, news related to the banking sector tested buyers’ appetite for cryptocurrencies and weighed on ETH inflows.
According to CryptoQuant, betting entries fell from 22,176 ETH on Friday, to 16,192 ETH on Saturday, the lowest entry since March 13. As investors look to the Shapella update, bet entries may indicate possible changes in the total value wagered. A sharp decline in ETH staking inflows in the lead up to the Shapella upgrade could signal a likely increase in demand for non-staked ETH. After the Shapella update, participants can withdraw staked ETH from the Beacon Chain, which went live in December 2020.
On Saturday, the news that the Swiss cabinet held a crisis meeting to discuss the future of Credit Suisse Group AG (CS) tested buyers’ appetites. There were also reports that UBS AG (UBS) has started talks with Credit Suisse to acquire the embattled bank. However, USB reportedly asked the Swiss government to cover around $6 billion in costs to acquire Credit Suisse Group AG, setting off alarm bells.
Events on Saturday demonstrated that the fallout from the collapse of Silicon Valley Bank and Signature Bank (SBNY) continues to affect the banking sector.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 1.08% to $1,783. A bullish start to the day saw ETH rally from an initial low of $1,763 to a high of $1,792.
ETH needs to move through the $1,788 pivot to target the first major resistance level (R1) at $1,822, and Saturday’s high of $1,846. A return to $1,800 would signal a breakout session. However, the Shanghai update news and 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 $1881, and resistance at $1900. The third major resistance level (R3) sits at $1,974.
Ethereum has broken above the 50-day EMA, currently at $1684. 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 ($1684) would support a break of R1 ($1822) to target R2 ($1881) and $1900. However, a drop through S1 ($1,729) would give bears a run on S2 ($1,695) and the 50-day ($1,684). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
