On Saturday, ethereum (ETH) joined the broader crypto market in the red, falling by 1.67% to end the day at $1,764.
Banking contagion risk weighed on investor sentiment as investors digested the latest Credit Suisse-related news.
However, the technical indicators remained bullish, leaving $2,000 in view.
Ethereum (ETH) fell by 1.67% on Saturday. Partially reversing a 6.98% loss from 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 hitting reverse. Coming up against the First Major Resistance Level (R1) at $1,843, ETH fell to a late afternoon low of $1,753. However, steering clear of the Frist Major Support Level (S1) at $1,705, ETH revisited the $1,800 handle before falling back into negative territory.
Swiss Banking Sector Woes Led Staking Inflows and ETH Lower
There were no further updates from Ethereum developers on the Shapella upgrade to influence investor sentiment ahead of the April 12 Shapella Upgrade target date.
However, banking sector-related news tested buyer appetite for cryptos and weighed on ETH staking inflows.
According to CryptoQuant, staking inflows fell from 22,176 ETH on Friday to 16,192 ETH on Saturday, the lowest inflow since March 13. As investors look toward the Shapella upgrade, staking inflows can signal possible changes in total staked value. A sharp decline in ETH staking inflows in the runup to the Shapella upgrade could signal a likely surge in demand for unstaking ETH.
ETH Staking Inflows 190323
After the Shapella upgrade, stakers can withdraw staked ETH from the Beacon Chain, which went live in December 2020.
On Saturday, news of the Swiss cabinet holding a crisis meeting to discuss the future of Credit Suisse Group AG (CS) tested buyer appetite. There were also reports of UBS AG (UBS) entering into talks with Credit Suisse to acquire the beleaguered bank. However, USB reportedly requested the Swiss government to cover circa $6 billion in costs to acquire Credit Suisse Group AG, which sounded the alarm bells.
Events from Saturday demonstrated that the fallout from the collapse of Silicon Valley Bank and Signature Bank (SBNY) continues to affect the banking sector.
The Day Ahead
Investors should continue to monitor updates from UBS and Credit Suisse talks. News of an agreement for UBS to acquire Credit Suisse would support riskier assets. However, investors would likely face a stern test on news of failed talks that could lead to the collapse of the Swiss banking giant.
Shapella upgrade news will continue to draw interest as the April 12 upgrade date approaches.
Investors should also monitor the crypto news wires, with regulatory activity and US lawmaker chatter focal points. A quiet session would leave Binance, FTX, and updates from the ongoing SEC v Ripple case to move the dial.
Ethereum (ETH) Price Action
At the time of writing, ETH was up 1.08% to $1,783. A bullish start to the day saw ETH rise from an early low of $1,763 to a high of $1,792.
ETHUSD 190323 Daily Chart
ETH needs to move through the $1,788 pivot to target the First Major Resistance Level (R1) at $1,822 and the Saturday high of $1,846. A return to $1,800 would signal a breakout session. However, Shanghai upgrade news and the crypto news wires should be ETH-friendly to support a breakout.
In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,881 and resistance at $1,900. The Third Major Resistance Level (R3) sits at $1,974.
Failure to move through the pivot would leave the First Major Support Level (S1) at $1,729 in play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,700 and the Second Major Support Level (S2) at $1,695. The Third Major Support Level (S3) sits at $1,602.
ETHUSD 190323 Hourly Chart
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,684. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above the Major Support Levels and the 50-day EMA ($1,684) would support a breakout from R1 ($1,822) to target R2 ($1,881) and $1,900. However, a fall through S1 ($1,729) would give the bears a run at S2 ($1.695) and the 50-day ($1,684). A fall through the 50-day EMA would send a bearish signal.
ETHUSD 190323 4 Hourly Chart
This article has been originally published at: https://www.fxempire.com/forecasts/article/eth-eyes-a-return-to-1800-to-target-2000-on-credit-suisse-woes-1315396