ETH Needs to Prove $1,900 or Face Less than $1,800 on Regulatory Uncertainty

Audy Castañeda
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ETH Needs to Prove $1,900 or Face Less than $1,800 on Regulatory Uncertainty

On Sunday, Ethereum (ETH) joined the broader market in positive territory, rising 1.83%, to end the day at $1,776. Easing Deutsche Bank’s jitters and sentiment towards the SEC vs. Ripple was supportive, while ETH participation statistics were bearish. However, technical indicators remained bullish, leaving $2,000 in the offing.

Ethereum (ETH) was up 1.83% on Sunday. Reversing a 0.46% loss on Saturday, ETH ended the week down 0.59% at $1,776. Despite the bullish session, XRP was unable to hold the $1,800 level.

A mixed start to the day saw ETH fall to an early low of $1,741. Breaking away from the first major resistance level (R1) at $1,718, ETH rallied to an early afternoon high of $1,801. ETH broke above the first major resistance level (R1) at $1,768 and briefly through the second major resistance level (R2) at $1,791, before ending the day at $1,776.

Shapella Upgrade Silence Left ETH in the Hands of the Broader Market

There were no updates from Shapella for investors to consider, with the update scheduled for mid-April. The lack of news from the network left ETH in the hands of the broader crypto market.

Easing Deutsche Bank (DB) jitters and investor sentiment towards the SEC vs. Ripple provided price support. Over the weekend, there was no frenetic activity in the German capital to spook investors. German lawmakers were quick to point out last week that Deutsche Bank is well capitalized and profitable.

Hopes of a Ripple victory in the SEC vs. Ripple also provided support. However, headwinds persist, with Binance and Coinbase (COIN) joining a growing list of crypto players on the SEC’s radar.

ETH inflows returned to below 10,000 on Sunday, a bearish sign. According to CryptoQuant, staking entries fell from 13,536 ETH on Saturday, to 8,640 ETH on Sunday, the lowest entry since March 5 (3,552). An entry period of less than 10,000 ETH could indicate non-interests outnumbering those interested after the Shapella update.

The total value wagered also decreased on Sunday. While a decline is not uncommon, an extended downtrend would be a bearish sign.

It is a quiet day on the global economic calendar. The lack of external market forces will leave ETH in the hands of news related to the banking sector and crypto news wires. Comments from the Fed and the NASDAQ Composite Index will also need consideration this afternoon. The NASDAQ mini was up 24.5 points this morning.

Ethereum (ETH) Price Action – Technical Indicators

A range-bound start to the day saw ETH rally to an early high of $1,782, before dipping into the red.

ETH needs to move through the $1,773 pivot, to target the first major resistance level (R1) at $1,804. A move through the Sunday high of $1,801 would signal a breakout session. However, crypto news leads must 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 $1833, and resistance at $1850. The third major resistance level (R3) sits at $1,893.

Ethereum has broken above the 50-day EMA, currently at $1,757. The 50-day EMA has turned away from the 100-day EMA, with the 100-day EMA pulling further away from the 200-day EMA, providing bullish signals.

A hold above the 50-day EMA ($1757) would support a break of R1 ($1804) to target R2 ($1833) and $1850. However, a drop through the 50-day EMA ($1,774) would give the bears a run at S1 ($1,744) and the 100-day EMA ($1,721). A drop through the 50-day EMA would send a bearish signal.

By Audy Castaneda

BTC Needs a Catalyst to Break Resistance at $28,000

Audy Castañeda
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<strong>BTC Needs a Catalyst to Break Resistance at $28,000</strong>

It was a bullish Saturday, with BTC rising 0.06%, to end the day at $27,478. There were no crypto events to provide direction as investors considered market events for the week. Technical indicators remain bullish, with $30,000 still in sight.

On Saturday, Bitcoin (BTC) rose 0.06%. Following a 2.98% loss since Friday, BTC ended the day at $27,478. Despite the bullish session, BTC failed to reach the $28,000 level for the first time in seven sessions.

After a morning of range bound, BTC surged to a mid-afternoon high of $27,810. Failing to reach the first major resistance level (R1) at $28,225, BTC fell to a late low of $27,164. Moving away from the first major support level (S1) at $26,849, BTC revisited the $27,500 level before pulling back.

Bitcoin Stabilizes Despite Persistent Headwinds

After a busy session on Friday, there were no crypto events or external market forces to guide investors on Saturday.

The lack of events left BTC within a range of $650 on Saturday as investors digested the events of the week.

An increasingly active SEC through enforcement regulation and anti-crypto sentiment in the White House leaves US cryptocurrencies in a precarious position. However, hopes of a Ripple victory in the SEC vs. Ripple could materially change the landscape.

Easing fears of a Deutsche Bank (DB) collapse also provided support for cryptocurrency prices. There were no emergency meetings, no calls from government officials for emergency assistance, to prevent the demise of a profitable and well-capitalized bank. The silence likely provided investors with peace of mind.

However, headwinds persist, with Binance and Coinbase (COIN) coming under increasing regulatory scrutiny. There is also the ever-present threat of a European bank collapse, in the wake of the failures of Silicon Valley Bank and Signature Bank. With investors viewing Europe as a crypto-friendly continent, a regional financial crisis could affect investor appetite.

Investors should continue to monitor news wires for any news related to the banking sector, which could put Bitcoin’s recently discovered safe-haven status to the test.

Bitcoin (BTC) Price Action – Technical Indicators

A range-bound start to the day saw BTC rally to an early high of $27,493 before pulling back.

BTC needs to move through the $27,484 pivot to target the first major resistance level (R1) at $27,804, and Saturday’s high of $27,810. A return to $27,500 would indicate a prolonged bullish session. Crypto news wires need to be crypto-friendly to support a prolonged rally.

In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $28,130, and resistance at $28,500. The third major resistance level (R3) sits at $28,776.

BTC settled above the 50-day EMA ($27,205). 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, sending bullish signals.

A hold above the 50-day EMA ($27,205) would support a break of R1 ($27,804) to target R2 ($28,130) and $28,500. However, a drop through the 50-day EMA ($27,205) and S1 ($27,158) would give bears a run on S2 ($26,838). A drop through the 50-day EMA would send a bearish signal.

By Audy Castaneda

The Cayman Islands: A Safe Haven for Blockchain Companies?

Audy Castañeda
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<strong>The Cayman Islands: A Safe Haven for Blockchain Companies?</strong>

Cayman Islands vs. Bahamas: how the FTX scandal affected both jurisdictions. The regulatory landscape and tax benefits of the Cayman Islands. Importance of transparency and reputation in offshore financial services.

The FTX scandal, conceived in the Bahamas, left investors grappling with legal battles, trying to recover funds from the collapsing company. As a consequence, the reputation of the Bahamas has taken a hit, with negative publicity and fear, uncertainty and doubt casting a shadow over the island nation. Meanwhile, the Cayman Islands have emerged as a crypto-friendly alternative, attracting more businesses and Blockchain startups.

After the notorious collapse of FTX, the jurisdiction of the Bahamas has been tainted by controversy. The arrest of Sam Bankman-Fried in January further intensified the scrutiny, prompting some to question the country’s regulatory framework.

This has raised concerns that the Bahamas could face difficulties in attracting new investment and maintaining its status as a competitive offshore jurisdiction in the financial services sector.

Despite the FTX scandal, the Bahamas has taken steps to improve financial regulations and attract legitimate business. The introduction of the DARE Bill in 2020 marked significant progress towards a comprehensive regulatory framework for the digital asset sector.

Impact of the DARE Bill on the Digital Asset Landscape

The DARE bill sets out licensing requirements, compliance obligations, and reporting standards for digital asset businesses. It also provides guidelines on consumer protection, anti-money laundering, as well as the fight against the financing of terrorism.

By implementing this bill, The Bahamas has demonstrated its commitment to fostering a secure and transparent environment for businesses, investors, and users of digital assets.

Without a doubt, the FTX fiasco has dealt a heavy blow to the reputation of the Bahamas as an offshore financial center. As long as FTX and Sam Bankman-Fried remain in the spotlight, that likely won’t change.

Cayman Islands: A Blockchain Haven?

On the other hand, the Cayman Islands have earned a reputation as a crypto-friendly jurisdiction. With at least 58 Blockchain companies now based there, including prominent firms like Block.one, this British Overseas Territory has positioned itself as a desirable location for Blockchain entities.

Key factors contributing to this attractiveness include strong regulation, tax neutrality, and a skilled workforce.

When it comes to regulations, the Cayman Islands excels. His government has put in place clear and comprehensive guidelines for blockchain companies, such as the Virtual Asset Service Provider (VASP) regime.

This creates a stable environment for growth, as evidenced by the successful launch of numerous Initial Coin Offerings (ICOs) in the region. By comparison, the regulatory landscape in the Bahamas remains somewhat murky, leading to confusion and apprehension among potential investors.

Both the Bahamas and the Cayman Islands have duty-free environments, which attract companies to set up shop within their borders. These jurisdictions do not impose corporate, capital gains or income taxes, making them attractive options for companies looking to minimize the tax burden. However, the Cayman Islands’ stronger reputation and regulatory clarity give it a slight advantage in this regard.

Finally, the Cayman Islands has a skilled workforce, with professionals well-versed in Blockchain technology and financial services. As the demand for experts in these fields grows, the jurisdiction remains well-equipped to meet the needs of Blockchain companies.

In conclusion, the Cayman Islands seem to have the advantage, compared to the Bahamas. Its clear regulatory framework, skilled workforce, and strong reputation as a cryptocurrency-friendly jurisdiction make it a more attractive option for Blockchain companies and startups.

By Audy Castaneda

XRP Targets $0.50 as Ripple Chairman Monica Long’s Optimism Resonates

Audy Castañeda
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0
<strong>XRP Targets $0.50 as Ripple Chairman Monica Long’s Optimism Resonates</strong>

On Saturday, XRP bucked the downtrend of the market, rising 4.21%, to end the day at $0.44365. The expectation of a Ripple victory in the SEC vs. Ripple delivered a bullish session. Technical indicators remain bullish, indicating a return to $0.50.

On Saturday, XRP rose 4.21%. Reversing a 4.20% loss from Friday, XRP ended the day at $0.46513. XRP avoided sub-$0.41 for the third session in a row and the third time since November 2022.

A mixed start to the day saw XRP drop to an early low of $0.42341 before making a move. Moving away from the first major support level (S1) at $0.4122, XRP rallied to a late afternoon high of $0.46513. XRP broke the first major resistance level (R1) at $0.4418 to end the day at $0.44365.

Optimism Silences Jitters in the Banking Sector and Regulatory Uncertainty

It was a quiet Saturday, with no updates on the ongoing SEC vs. Ripple to influence investor sentiment. The lack of updates caused investors to consider the latest court filings.

On Monday, Ripple filed a letter citing the rulings from Voyager Digital’s bankruptcy proceedings to support its fair notice defense. Comments by Chief Justice Wiles in response to SEC objections reignited hope for a Ripple victory.

The SEC’s response to the letter supported market optimism, with the US regulator targeting the defense. In response to Ripple’s letter supporting its fair notice defense, the SEC had this to say about Ripple’s filing:

“Defendants blatantly misrepresent Voyager bankruptcy court statements, and take select phrases out of context, in a misguided attempt to further their futile fair notice defense.”

Midweek, Monica Long, President of Ripple, shared market optimism of a Ripple win. As investors consider the latest filings, the rulings on the Hinman Papers could also materially influence the direction of the case.

Updates on the SEC vs. Ripple will continue to be the focal point. Comments related to this week’s filings, as well as court rulings on the Hinman Papers and Summary Judgment Response Briefs, could also materially affect the US cryptocurrency regulatory landscape.

However, the lack of updates on the SEC vs. Ripple would leave regulators and legislators talking to generate interest, with Binance and Coinbase (COIN) in the spotlight.

XRP Price Action – Technical Indicators

A mixed start to the day saw XRP fall to an early low of $0.44104, before rising to a high of $0.44972.

XRP needs to avoid the $0.4441 pivot, to target the first major resistance level (R1) at $0.4647, and Saturday’s high of $0.46513. A return to $0.45 would signal a bullish session. However, the broader crypto market and the SEC vs. Ripple would need to support a breakout.

In the event of another prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4858, and resistance at $0.50. The third main resistance level (R3) sits at $0.5275.

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. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.42035) would support a break from R1 ($0.4647) to the target of R2 ($0.4858) and $0.50. However, a drop through S1 ($0.4230) and 50-day EMA ($0.42035) would bring the 100-day EMA ($0.40429) and S2 ($0.4023) into play. A drop through the 50-day EMA would send a bearish signal.

By Audy Castaneda

ETH Bulls Will Target $1,850 despite Regulatory Scrutiny and Banking Issues

Audy Castañeda
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<strong>ETH Bulls Will Target $1,850 despite Regulatory Scrutiny and Banking Issues</strong>

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

Bears Eye $0.350 on Binance-Related News

Audy Castañeda
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0
<strong>Bears Eye $0.350 on Binance-Related News</strong>

ADA joined the broader crypto market in a bearish session on Friday, falling 3.23%, to end the day at $0.360. Input Output HK (IOHK) weekly development updates faded to the background as investors responded to the Binance news and jitters from Europe’s banking sector. However, technical indicators remained bullish, leaving $0.40 up for grabs.

ADA fell 3.23% on Friday. Reversing a 3.05% gain on Thursday, ADA ended the day at $0.360. Significantly, ADA avoided a return below $0.350 for the second session in a row.

A mixed start to the day saw ADA rally to an early high of $0.373 before pulling back. Missing the first main resistance level (R1) at $0.388, ADA fell to a late low of $0.355. However, finding support at the first major support level (S1) at $0.355, ADA ended the day at $0.360.

Investors Ignore IOHK’s Weekly Development Report

Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers continued to disappoint, with new projects launched on the Cardano network stalling for the third time in four weeks. Regulatory uncertainty and scrutiny from lawmakers could be affecting project launches.

Prior to the Vasil hard fork, the number of projects launched on Cardano was 98, with 1,100 projects built on the Cardano network.

Other statistics included 63.5 million transactions (Previous Report: 63.0 million), 8.03 million native tokens (PR: 7.97 million), and 70,937 token policies (PR: 70,737).

Binance and European Banking News Weigh on Investor Sentiment

Disappointing weekly development update numbers left ADA in the hands of the broader crypto market.

The news that Binance suspended deposits and withdrawals due to a temporary glitch sent ADA and the crypto market into negative territory. News of Binance employees helping users bypass KYC protocols was also bearish.

The latest news about Binance is likely to draw increased regulatory and lawmaker scrutiny at a time when US lawmakers and regulators are already investigating dealings on the platform.

ADA Price Action – Technical Indicators

This morning, ADA was up 0.28% at $0.361. A range-bound start to the day saw ADA fall to an early low of $0.359, before rising to a high of $0.361.

ADA has to move through the pivot at $0.363 to target the first major resistance level (R1) at $0.370, and Friday’s high of $0.373. A return to $0.365 would support a bullish session. However, updates to the Cardano network and the broader crypto market should provide support.

In the event of a breakout, ADA would likely test the second major resistance level (R2) at $0.381. The third main resistance level (R3) sits at $0.399.

ADA broke above the 50-day EMA, currently at $0.355. The 50-day EMA has turned away from the 200-day EMA, with the 100-day EMA lowering back to the 200-day EMA, providing bullish signals.

Avoiding the 50-day EMA ($0.355) would support a break of R1 ($0.370) to give the bulls a run into R2 (0.381). However, a drop through the 50-day EMA ($0.355) would bring the S1 ($0.352) and the 200-day EMA ($0.350) into view. A slide through the 50-day EMA would send a bearish signal, and it would give the bears a run at the major support levels.

By Audy Castaneda

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