ETH Eyes Rebound to $1,800 to Target $2,000 in Credit Suisse Troubles

the main ideas:

  • On Saturday, Ethereum (ETH) joined the broader crypto market in the red, dropping 1.67% to end the day at $1,764.
  • The risks of the banking crisis affected investor sentiment as investors digested the latest news regarding Credit Suisse.
  • However, technical indicators remained bullish, leaving $2,000 in sight.

Ethereum (ETH) fell 1.67% on Saturday. Partially reversing Friday’s 6.98% loss, ETH ended the day at $1,764. Despite the bearish session, ETH avoided below $1,700 for the first time since September 2022.

After a choppy start to the day, ETH climbed to a high of $1,846 before retreating. Against the first major resistance level (R1) at $1,843, ETH dropped to $1,753 in the afternoon. However, while avoiding the first major support level (S1) at $1,705, ETH returned to the $1,800 handle before retreating into negative territory.

Problems in the Swiss banking sector led to capital inflows and a drop in ETH

There were no further updates from Ethereum developers regarding the Shapella upgrade to influence investor sentiment ahead of the Shapella upgrade target date of April 12th.

However, news related to the banking sector tested the buyer’s appetite for cryptocurrencies and weighed the flow of ETH stakes.

According to CryptoQuant, stock inflows fell from 22,176 ETH on Friday to 16,192 ETH on Saturday, the lowest inflow since March 13th. As investors look to upgrade Chabela, stock inflows can indicate potential changes in total stake value. The sharp drop in ETH stake flows in the run-up to the Shapella upgrade could indicate a potential increase in demand for unstable ETH.

ETH share inflows 190323

After the Shapella upgrade, players can withdraw ETH deposited from the Beacon Chain, which went into effect in December 2020.

On Saturday, news that the Swiss Cabinet was holding an emergency meeting to discuss the future of Credit Suisse Group AG (CS) tested buyer appetite. There were also reports that UBS AG (UBS) had entered talks with Credit Suisse to take over the embattled bank. However, USB reportedly asked the Swiss government to cover about $6 billion in acquisition costs for Credit Suisse Group AG, which set off alarm bells.

Events from Saturday showed that the fallout from the collapse of Silicon Valley Bank and Signature Bank (SBNY) is still affecting the banking sector.

next day

Investors should continue to monitor updates from the UBS and Credit Suisse calls. News of the UBS acquisition of Credit Suisse will support riskier assets. But investors are likely to face a severe test on the back of news of the failure of the talks, which could lead to the collapse of the Swiss banking giant.

News of Chabela’s promotion will continue to generate interest as the April 12 promotion date approaches.

Investors should also keep an eye on cryptocurrency news, with regulatory activity and talking points from US lawmakers. The quiet session will leave Binance, FTX and updates from the ongoing SEC v Ripple status to get the wheel moving.

Ethereum (ETH) price movement

At the time of writing, ETH is up 1.08% at $1,783, and a bullish start to the day has seen ETH rally from an early low of $1,763 to $1,792.

ETHUSD 190323 daily chart

Technical indicators

ETH needs to break the $1,788 pivot to target the first major resistance level (R1) at $1,822 and Saturday’s high at $1,846, a return to $1,800 would indicate a breakout session. However, the Shanghai upgrade news and crypto news must be ETH-friendly to support the hack.

Should the rally continue, the bulls are likely to test the second major resistance level (R2) at $1,881 and the resistance at $1,900, and the third major resistance level (R3) at $1,974.

If it fails to move through the pivot, the first major support level (S1) leaves $1.729 in play. However, barring the event-driven crypto market sell-off, ETH should avoid below $1,700, the second major support level (S2) at $1,695, and the third major support level (S3) at $1,602.

ETHUSD 190323 hourly chart

Looking at the exponential moving average and the 4-hour candlestick chart (below), it was a bullish sign. Ethereum was above the 50-day EMA, currently at $1,684. The 50-day moving average has moved away from the 100-day moving average, with the 100-day moving average widening from the 200-day moving average, giving bullish signals.

Waiting above the key support levels and the 50-day EMA ($1,684) will support a breakout from R1 ($1,822) to target R2 ($1,881) and $1,900. ($1,695) and 50 days ($1,684). A dip through the 50 day EMA could send a bearish signal.

ETHUSD 190323 4-hour chart

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