ETH Bears Target Sub-$1,880 on Gensler’s SEC v Ripple Comments

Key Insights:

• ETH extended the losing streak to four sessions on Monday, falling 0.62% to end the day at $1,912.
• The crypto news wires left ETH and the broader market on the back foot.
• However, the technical indicators remained bullish, signaling a return to $2,000.

Ethereum (ETH) fell by 0.62% on Monday. Following a 0.41% loss on Sunday, ETH ended the day at $1,912. ETH revisited sub-$1,900 for the first time in four sessions.

Ethereum Price Action

This morning, ETH was down 0.06% to $1,911. A range-bound start to the day saw ETH rise to an early high of $1,918 before falling to a low of $1,908.

Daily Chart

The Daily Chart showed ETH/USD sitting above the $1,895 – $1,865 support band after testing the lower level of the support band on Monday.

ETH/USD also sits above the 50-day ($1,871) and 200-day ($1,770) EMAs, signaling bullish momentum over the near and long term. Notably, the 50-day EMA widened further from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 52.79 reading signaled a bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a run at $2,000 and the $2,075 – $2,105 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at the $1,950 psychological level. ETH/USD sits below the $2,075 – $2,105 resistance band and the 50-day EMA ($1,917). However, ETH remains above 200-day ($1,882) EMAs, sending bearish near-term but bullish longer-term price signals.

Significantly, the 50-day EMA narrowed to the 200-day EMA, signaling a return to sub-$1,900 to target the $1,895 – $1,865 support band and the 200-day EMA ($1.882).

However, a move through the 50-day EMA ($1,917) would bring $2,000 and the $2,075 – $2,105 resistance band into view.

The 14-4H RSI reading of 45.87 sends bearish ETH price signals, with selling pressure outweighing buying pressure. Significantly, the bearish RSI suggests a return to sub-$1,900 to bring the $1,895 – $1,865 support band and the 200-day EMA ($1,882) into view.

SEC Gary Gensler Comments and US Lawmaker Silence Test Buyer Appetite

It was a relatively quiet Monday session, with the crypto news wires on the light side. However, reactions to the SEC v Ripple Court ruling remained the focal point at the start of the week.

After a period of silence, SEC Chair Gary Gensler shared his views on the SEC v Ripple Court ruling, saying,

“We’re still looking at it and assessing that opinion.”

Gensler’s comment suggested the SEC is looking for grounds to appeal, which could leave the US crypto market in an even lengthier period of regulatory uncertainty at the hands of the SEC’s regulation by enforcement mantra.

Gensler also reiterated the SEC would continue to bring crypto firms that do not comply with SEC rules into compliance.

Despite the SEC Chair’s comments, US lawmakers remained silent on Monday. The markets would need bipartisan support for legislation to introduce clear regulatory guidelines for crypto players and to protect investors.

Staking Statistics Added to the Bearish Mood on Monday

According to CryptoQuant, staking inflows rose from 24,544 ETH on Sunday to 41,344 on Monday. Significantly, staking inflows remained at below-normal trends, a bearish price signal.

The overnight withdrawal profile was bearish, with principal withdrawals at above-normal levels. However, withdrawal projections for the morning session are relatively bullish. Projections show ETH withdrawals will sit at normal withdrawal levels until late morning.

On Monday, the net ETH staking balance stood at a 22,180 ETH surplus ($42.83 million), down 21.96% over 24 hours. Deposits totaled 25,850 versus withdrawals of 3,660 ETH.

According to TokenUnlocks, total pending withdrawals stood at 25,260 ETH, equivalent to approximately $48.23 million. Notably, the staking APR stood at 5.54%, unchanged over 24 hours. While the downward trend in the staking APR is ETH price negative, the decline in the net staking balance was also negative.