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ETH Bulls to Target $1,850 Despite Regulatory Scrutiny and Bank Woes

By:
Bob Mason
Updated: Mar 26, 2023, 05:08 GMT+00:00

It was a bearish Saturday session, with ETH joining the broader market in the red. However, staking numbers remain bullish despite regulatory uncertainty.

ETH Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Saturday, ethereum (ETH) slipped by 0.46% to end the day at $1,744.
  • A quiet start to the weekend left ETH range bound as investors considered the events from the week.
  • However, the technical indicators remained bullish, leaving $2,000 in view.

Ethereum (ETH) fell by 0.46% on Saturday. Following a 3.63% slide on Friday, ETH ended the day at $1,744. Despite the bearish session, ETH avoided sub-$1,700 for the eighth consecutive session.

After a range-bound morning, ETH rose to a mid-afternoon high of $1,765. Falling short of 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 handle before easing back.

Regulatory Uncertainty and Banking Sector Woes Leave ETH Flat

Investor jitters over a Deutsche Bank (DB) collapse eased on Saturday. However, investors will likely remain cautious over the next few weeks as fallout from the Silicon Valley Bank and Signature bank bankruptcies spreads to Europe.

While ETH can provide an alternative option to traditional banking, the threat of a financial crisis would test investor resilience. Regulatory uncertainty could also affect the use of ETH and others as alternatives to fiat currency during the ongoing banking crisis.

Increased regulatory scrutiny has left ETH short of the $2,000 handle. However, a Ripple victory in the SEC v Ripple case would likely shift investor sentiment.

This week, crypto market-related news left ETH and the broader market on the back foot, with Binance and Coinbase (COIN) on the SEC radar.

Pre-Shapella ETH Staking Movements are Price Bullish

ETH staking inflows inched higher on Saturday. According to CryptoQuant, staking inflows rose from 12,736 ETH on Friday to 13,536 ETH on Saturday. Staking inflows remained elevated, supporting the current upward trend in total value staked in the run-up to the Shapella hard fork.

Staking inflows rise.
ETH Staking Inflows 260323

Investors should identify a shift in trends, with a downward trend possibly signaling a jump in unstaking requests upon completion of the Shapella upgrade.

Total staking value rises.
Total Value Staked 260323

The Day Ahead

Regulatory scrutiny and the global banking sector remain investor focal points today. As investor jitters over a possible Deutsche Bank (DB) collapse subside, news of another European bank coming under scrutiny could test buyer sentiment.

While banking sector-related news will draw interest, US regulatory activity and lawmaker commentary remain the key drivers. Investors should also monitor the crypto news wires for regulatory activity and Binance and Coinbase (COIN)-related news.

Commentary on the ongoing SEC v Ripple case would also need consideration. Court rulings in favor of Ripple would support an ETH price breakout.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.64% to $1,755. 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 finds support.
ETHUSD 260323 Daily Chart

Technical Indicators

ETH needs to avoid the $1,741 pivot to target the First Major Resistance Level (R1) at $1,768. A move through the Saturday high of $1,765 would signal a breakout session. However, the crypto news wires should be crypto-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,791 and resistance at $1,800. The Third Major Resistance Level (R3) sits at $1,841.

A fall through the pivot would bring the First Major Support Level (S1) at $1,718 into play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,700 and the Second Major Support Level (S2) at $1,691. The Third Major Support Level (S3) sits at $1,641.

ETH resistance levels in play above the pivot.
ETHUSD 260323 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 $1,754. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening further from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($1,754) would support a breakout from R1 ($1,768) to target R2 ($1,791) and $1,800. However, a fall 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 fall through the 50-day EMA would send a bearish signal.

EMAs remain bullish.
ETHUSD 260323 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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