On Friday, Ethereum (ETH) fell 3.63% to close the day at $1,752. News related to Binance, as well as the Deutsche Bank issues, affected investor sentiment and ETH inflows. However, technical indicators remained bullish, leaving $2,000 in sight.
Ethereum (ETH) fell 3.63% on Friday. Partially reversing a 4.54% rally on Thursday, ETH ended the day at $1,752. Despite the bearish session, ETH avoided sub-$1,700 for the seventh straight session.
A mixed start to the day saw ETH rally to an early high of $1,823. Failing to reach the first major resistance level (R1) at $1,875, ETH fell to a late-afternoon low of $1,728. ETH briefly fell through the first major support level (S1) at $1,747, before closing the day at $1,752.
Deutsche Bank and Binance Send ETH into Negative Territory
Investor jitters over the banking sector crisis and tight liquidity continued to weigh on riskier assets.
Deutsche Bank (DB) became the focal point, as fears of a deepening crisis weighed on the banking sector. DB fell 8.53% on Friday, dragging financial stocks, European Boers and the crypto market into negative territory.
However, the NASDAQ Composite Index rallied late in the session, to end the day 0.31% higher. The late recovery provided much-needed support to ETH, which rallied from session lows.
News related to the crypto market left ETH and the broader market in the red. The news that Binance suspended deposits and withdrawals due to a technical issue weighed heavily. Reports of Binance employees helping users bypass Binance’s KYC controls contributed to Friday’s pullback.
ETH inflows eased further on Friday, but continued to avoid below 10,000. According to CryptoQuant, staking inflows decreased from 15,232 ETH on Thursday, to 12,736 ETH on Friday. Despite the decline, staking flows remained elevated, supporting the current uptrend in the run-up to the Shapella hard fork.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.22% to $1,753. A range-bound start to the day saw ETH fall to an early low of $1,749, before rising to a high of $1,761.
ETH needs to move through the $1,768 pivot to target the first major resistance level (R1) at $1,807, and Friday’s high of $1,823. A return to $1,800 would signal a breakout session. However, news related to the banking sector and crypto news leads 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 $1863, and resistance at $1900. The third major resistance level (R3) sits at $1,958.
Ethereum sat below the 50-day EMA, currently at $1,756. The 50-day EMA turned down to the 100-day EMA, while the 100-day EMA broke out from the 200-day EMA, giving mixed signals.
A move through the 50-day EMA ($1756) would support a break of R1 ($1807) to target R2 ($1863) and $1900. However, if it fails to move through the 50-day EMA ($1,756), the bears would race into S1 ($1,712) and the 100-day EMA ($1,711). A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
