When fears about financial market contagion persisted, the price of Ethereum created an unusual double-top pattern. On Friday, the ETH/USDT price fell below $1,700 after reaching a high of $1,765. That is still around 25% higher than last weekend's low of $1,370.
Stock and bond yields are falling.
The price of Ethereum fell as a bad wind continued to blow in the financial world. For example, even though the largest American banks placed $30 billion in the firm, the stock price of First Republic Bank fell by more than 10% on Friday.
Similarly, even after the Swiss National Bank (SNB) gave it almost $50 billion in liquidity to continue its turnaround, Credit Suisse's stock price plummeted by double digits. As a result, investors are growing increasingly concerned that the banking industry may implode.
This explains why US equities fell on Friday. The Dow Jones index lost almost 500 points, while the Nasdaq 100 and S&500 indexes fell by more than 1%.
Nonetheless, investors continued to flock to bonds for protection. As a result, all government bond rates fell further this week. According to data provided by Investing, the 2-year bond yield has declined from 5% to 3.97%. The 5-year and 30-year bond rates have also fallen to 3.52% and 3.6%, respectively.
In an interview with Trade Algo, Nouriel Roubini warns that the situation might worsen in the next months. As a result, he advised investing in short-term government bonds and safe havens such as gold. Roubini, sometimes known as Dr. Doom, is a well-known economist.
It appears that investors believe cryptocurrencies are also safe havens. For example, despite the banking sector's instability, Bitcoin has increased by more than $6,000 this week.
The Ethereum crypto price has created a worrisome pattern, according to the 4H chart. It has developed a double-top design with a $1,615 neckline. This is a common bearish indication, indicating that the coin will shortly experience a negative breakout. It has now fallen slightly below the critical support level of $1,742, which was reached on February 16. The 25-day and 50-day moving averages are also in favor of Ethereum.
As a result of the stock market's decline and the double-top, there is a chance that the Ethereum price may collapse. This sell-off will take it back to the important support level of $1,615.
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