On Monday, Ethereum (ETH) ended a four-day losing streak, rising 0.06% to end the day at $1,566. Fed fear and regulatory scrutiny resurfaced, with a delay to the Shanghai update leaving ETH unchanged on the day. Technical indicators remain bearish, with less than $1,500 in sight.
Ethereum (ETH) was up 0.06% on Monday. Partially reversing a 0.13% gain on Sunday, ETH ended the day at $1,566. ETH failed to reach the $1,600 level for the third session in a row and ended a four-day losing streak.
A mixed start to the day saw ETH drop to a mid-morning low of $1,555. Finding support at the first major resistance level (R1) at $1,550, ETH rallied to a high of $1,583 before pulling back. The first major resistance level (R1) at $1,584 capped the rise on Monday.
Fed Angst and Crypto Regulatory Put ETH on the Defensive
It was another quiet session on Monday. There were no updates on the delayed update from Shanghai to provide direction.
The lack of news on updates left ETH in the hands of the broader crypto market. Increased regulatory activity and scrutiny from lawmakers continued to weigh on investor confidence. Fed Fear also resurfaced, as investors awaited testimony from Fed Chairman Powell later today.
On Monday, the US banking watchdog, the Comptroller of the Currency, delivered an anti-crypto commentary. The Head of Office reportedly compared the collapse of FTX to the collapse of the Bank of Credit and Commerce International (BCCI).
Michael Hsu reportedly said the following:
“We won’t be able to know which players are trustworthy and which aren’t until a credible third party, like a consolidated home country supervisor, can meaningfully oversee them.”
Hsu added that “Currently, no crypto platforms are subject to consolidated supervision. Not one.”
The comments come at a difficult time for the crypto market, with the collapse of FTX eroding confidence.
Investor apprehension ahead of Fed Chairman Powell’s testimony also tested buyers’ appetites. A shift to a more aggressive stance would weigh on riskier assets.
Ethereum (ETH) Price Action – Technical Indicators
ETH needs to avoid the $1,568 pivot to target the first major resistance level (R1) at $1,581 and Monday’s high of $1,583. A return to $1,580 would signal a bullish 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 second major resistance level (R2) at $1,596 and resistance at $1,600. The third main resistance level sits at $1,624.
A move through R1 ($1,581) would give the bulls a run on the 50-day EMA ($1,593) and R2 ($1,596). A move through the 50-day EMA would send a bullish signal. However, if the 50-day EMA ($1,593) is not broken, the major support levels will still be in play.
To sum up, it’s a quiet day on the US economic calendar. There are no US economic indicators for investors to consider, leaving Fed Chairman Powell to influence the NASDAQ Composite Index and the broader crypto market.
Investors should continue to monitor crypto news wires for updates from Silvergate Bank, Binance, and FTX. News of the ongoing SEC vs. Ripple case will also be influential.
For Ethereum, the Shanghai update news will need to be factored in alongside conversations from US lawmakers and regulators.
By Audy Castaneda
