Technical analysis for March 06: Ether (ETH) in the red

Ether (ETH) also fell 6% on Friday and is moving into the red this month. This decline may continue as the Silvergate situation continues to rock the crypto industry.

Ether (ETH) has been in the red since Friday

Silvergate reported a $1 billion loss on Friday, which rocked the crypto industry. The situation of this crypto bank seems on the verge of creating a wave of depression in the markets. Indeed, after this statement, the largest cryptos by market capitalization fell by almost 6%. With that, ether (ETH) plunges around $1550 and turns into the red for this month of March. At this rate, we could envisage the breakout of the $1462 support.

Ether (ETH) has been in the red since Friday
Ether (ETH) has been in the red since Friday – ETH/USD in Daily – TradingView

Indeed, the daily RSI continues to descend towards oversold territory. This shows an increase in bearish pressure in the market. Additionally, the price broke through the 50-day moving average with Friday’s decline. Indeed, this is the first break of this indicator since the beginning of the year. Thus, we could envisage a correction phase for ether (ETH), over the next few days. The price could thus come back to close the Gap zone between $1464 and $1349.

A sales opportunity?

On the hourly scale, we see that the price is still moving within the weekend range. Given the bearish configuration on the daily scale, we will therefore bet on a week of decline for ether (ETH). In this case, a sell position would be the most appropriate.

A Sell Opportunity on Ether (ETH)
A Sell Opportunity on Ether (ETH) – ETH/USD in H1 – TradingView

The area around $1620 looks like an interesting entry point. Indeed, this zone aligns with the fib level 50% of the range of the previous week. Especially since this level sits above the open of the month ($1604). Thus, we could consider the return of the price towards this zone before starting a descent towards $1400. However, if Ether (ETH) bottoms on Tuesday, this bearish scenario will be invalid. In this case, we could consider a rise towards $1692.

How it works ?

Here are the levels to remember for this sell position:

Entry point: $1615

Stop: $1660

Goal: $1409

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