ETH Bears Target Sub-$1,750 on Bearish Sentiment and Staking Stats

Key Insights:

• On Monday, ETH joined the broader crypto market in the red, falling 1.27% to end the day at $1,849.
• Staking statistics and withdrawal profiles deteriorated as investors responded to the surge in transaction fees and Binance-related news.
• The technical indicators turned bearish, signaling a return to sub-$1,750.

Ethereum (ETH) fell by 1.27% on Monday. Following a 1.42% loss on Sunday, ETH ended the day at $1,849. The bearish session sent ETH to sub-$1,850 for the first time in five sessions.

ETH rose to an early high of $1,887. However, falling short of the First Major Resistance Level (R1) at $1,916, ETH fell to a late afternoon low of $1,810. ETH fell through the First Major Support Level (S1) at $1,850, and the Second Major Support Level (S2) at $1,828 before ending the day at $1,849.

Staking Statistics and Withdrawals Delivered a Bearish Session

Staking statistics weighed on investor sentiment, with a broad-based crypto sell-off sending staking inflows south.

According to CryptoQuant, staking inflows tumbled from 177,984 ETH on Sunday to 61,856 on Monday. Market risk sentiment and surging ether gas fees contributed to the pullback.

The total value-staked continued rising despite the bearish Monday session.

Overnight, the withdrawal profile was bearish. Principal ETH withdrawals spiked for a prolonged period to test buyer appetite for a second consecutive session. However, projections signal a return to normal levels, delivering Tuesday price support.

Despite the bearish withdrawal profile and slide in staking inflows, TokenUnlocks reported another positive net staking balance. On Monday, the net ETH staking balance stood at a surplus of 43,020 ETH, equivalent to $81,780 million. Deposits totaled 182,690 ETH versus withdrawals of 139,670 ETH.

According to TokenUnlocks, total pending withdrawals stood at 0.134 million ETH, equivalent to approximately $0.247 billion.

Binance weighed on the broader crypto market.

News from the weekend of Binance temporarily suspending BTC withdrawals continued to weigh on investor sentiment. Sharp increases in transaction fees for ETH and BTC contributed to the Monday pullback.

The Day Ahead

ETH staking statistics and the withdrawal profile will continue to provide direction. Withdrawal projections are bullish for the morning session, with principal ETH withdrawals returning to normal levels. However, transaction fees will need to ease to support a bounce back in staking inflows.

Investors should also monitor the net balance on TokensUnlock, with a net surplus being a bullish price signal.

However, the crypto news wires will continue to influence. Court rulings from the SEC v Ripple case will move the dial, with Binance and Coinbase (COIN)-related news needing consideration.

This afternoon, there are no US economic indicators to provide direction, leaving Fed chatter to draw interest.

Ethereum Price Action

At the time of writing, ETH was down 0.43% to $1,841. A mixed start to the day saw ETH rise to an early high of $1,858 before falling to a low of $1,838.

ETH Technical Indicators

Resistance & Support Levels

ETH needs to move through the $1,849 pivot to target the First Major Resistance Level (R1) at $1,887 and the Monday high of $1,887. A return to $1,850 would signal a breakout session. However, staking statistics and the crypto news wires must support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,926 and resistance at $1,950. The Third Major Resistance Level (R3) sits at $2,003.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,810 in play. However, barring another crypto market sell-off, ETH should avoid sub-$1,750. The Second Major Support Level (S2) at $1,772 should limit the downside. The Third Major Support Level (S3) sits at $1,695.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 200-day EMA, currently at $1,884. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A move through the 200-day EMA ($1,884) would support a breakout from R1 ($1,887) and the 50-day ($1,897) and 100-day ($1,894) EMAs to target R2 ($1,926). However, failure to move through the 200-day EMA ($1,884) would leave S1 ($1,810) and sub-$1,800 in view.

A move through the 50-day EMA would send a bearish signal.