On Saturday, Bitcoin (BTC) and Ethereum (ETH) joined the broader market in negative territory for the third session in a row. Intensifying scrutiny from regulators and lawmakers on the crypto market and the news from Silvergate Bank weighed on investor sentiment. However, the dip buyers came back this morning to offer a bullish start to the session on Sunday.
Ethereum (ETH) fell 0.19% on Saturday. Following a 4.73% drop on Friday, ETH ended the day at $1,567. ETH failed to reach the $1,600 level for the first time since February 14.
A mixed start to the day saw ETH rally to an early morning high of $1,578 before pulling back. Failing to reach the first major resistance level (R1) at $1,630, ETH fell to a late low of $1,550. Breaking away from the first major support level (S1) at $1,529, however, ETH found late support to end the day at $1,567.
On Saturday, Bitcoin (BTC) fell 0.08%. Following a 4.73% drop on Friday, BTC ended the day at $22,345. BTC avoided levels below $22,000 despite the bearish session.
Range-bound throughout the morning, BTC rallied to a mid-morning high of $22,406 before falling into the red. Failing to reach the first major resistance level (R1) at $23,240, BTC fell to a late low of $22,176. Moving away from the first major support level (S1) at $21,726, however, BTC rallied to end the day at $22,345.
Silvergate Bank and Crypto Scrutiny Updates Sidelined Dip Buyers
On Saturday, investors were more responsive to the latest news from Silvergate Bank and increasing scrutiny of the crypto market from lawmakers.
The news that Silvergate Capital Corp (SI) announced the termination of its crypto payment network was negative for the market. The crypto-friendly bank terminated service following the decision to lead cryptocurrency exchanges to break ties.
Increasing scrutiny from lawmakers added to the bearish mood. News of UK banks placing restrictions on credit card cryptocurrency purchases and the latest on Binance were negative for the market.
Ethereum (ETH) Price Action – Technical Indicators
ETH needs to avoid a drop through R1 and the $1,565 pivot to target the second major resistance level (R2) at $1,593 and $1,600. A move through the morning high of $1,588 would signal a breakout session. However, the Shanghai update news and crypto news wires should support ETH to support a breakout.
In the event of a prolonged rally, the bulls would likely test the third major resistance level (R3) at $1,621 and resistance at $1,650.
Ethereum broke below the 200-day EMA, currently at $1,602. After the bearish cross on Friday, the 50-day EMA pulled back from the 100-day EMA, while the 100-day EMA turned down to the 200 day EMA, providing bearish signals.
A move through R2 ($1,593) and the 200-day EMA ($1,602) would give bulls a run on the 50-day EMA ($1,610) and 100-day EMA ($1,618) and R3 ($1,621). However, if the 200-day EMA is not broken, the major support levels would come into play. A move of ETH through the 50-day EMA ($1,610) would send a bullish signal.
By Audy Castaneda
