FX.co ★ Technical Analysis of ETH/USD for March 3, 2023

Crypto Industry News:

Silvergate Capital's shares fell almost in half today as the cryptocurrency bank delayed filing its annual (10K) report with the SEC. The report was due to appear in the Securities and Exchange Commission on March 16. Gary Gensler will definitely not be happy about this.

The institution is still "assessing the impact of events" that have occurred since late 2022. The bank has informed investors that it may not survive the current financial turmoil. Its share price has fallen by more than 60% since the beginning of the year, despite the current wave of optimism on the stock exchanges and better moods of the cryptocurrency market itself. In February, the Department of Justice opened an investigation into Silvergate's dealings with FTX and its sister company Alameda Research.

Given the growing (and costly) regulatory challenges and likely investigations by regulators, as well as business challenges (exacerbated liquidity challenges amid a crisis of confidence from customers affected by recent crypto events), the company is reassessing its business and strategy. Silvergate said it has reviewed the sale of investment securities to raise funding and is examining the impact that subsequent events may have on its ability to continue as a going concern.

Preliminary unaudited financial results for 2022, filed on January 17, include a net loss of $948.7 million, compared to a net profit of $75.5 million in 2021. Silvergate's net loss in 2022 is now close to 450% higher than its total market capitalization. The company has faced many challenges since late last year, after the collapse of the FTX exchange.

JPMorgan bank analysts downgraded Silvergate along with a number of other Wall Street institutions.

Technical Market Outlook:

The ETH/USD pair has reversed from the level of $1,677 after three wave up move had been terminated with a Shooting Star candlestick pattern on H4 time frame chart. The bears has manage to push the prices towards the key short-term technical support seen at the level of $1,558 and made the new local low at the level of $1,542. The intraday technical resistance is seen at the level of $1,677 and $1,680. A sustained breakout below the level of $1,487 would change the mid-term outlook to bearish, so please keep an eye on the $1,487 technical support (swing low). Any violation of this level would likely extend the drop towards $1,345, but in order to do this, the volatility must increase significantly.

Weekly Pivot Points:

WR3 - $1,672

WR2 - $1,654

WR1 - $1,642

Weekly Pivot - $1,635

WS1 - $1,624

WS2 - $1,616

WS3 - $1,581

Trading Outlook:

The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. The key technical support for bulls at $1,281 was broken already and the new swing low was established at $1,074. There is a clear test of the 50 WMA located at the level of $1,080, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. If the down move will be extended, then the next target for bears is located at the level of $1,000.