The bulls of Ether (ETH), the world’s second-largest cryptocurrency by market capitalization that supports the dominant Ethereum blockchain, are facing a crucial test as it retests its 200-Day Moving Average in the $1,420s. Recently, the ETH price briefly dropped below the 200DMA to $1,408 before trading around $1,450 again. However, ETH/USD remains down by about 6% on the day, according to TradingView, and over 8% in the past 24 hours, according to CoinMarketCap. On Thursday, the cryptocurrency markets had undergone a broad downturn following the collapse of crypto-friendly bank Silvergate, which had raised concern about crypto-friendly financial institutions SVB Financial and Signature Bank. Further issues that might disturb the market could emerge from the US jobs and CPI reports. The 200DMA is an essential technical level for most traders, with a shift above or below it often signaling or indicating a significant shift in near-term market momentum. For recent months, the 200DMA has become a critical level for Ethereum, with its decisive break above its 200DMA in mid-January considered a signal that the bear market may be over. Losing the grip on the 200DMA would be cause for alarm for ETH and could lead to a swift test of mid-December’s $1,350 highs. Nonetheless, Ethereum’s 14-Day Relative Strength Index (RSI) is close to entering oversold territory, signaling the possibility of consolidation in the near future.