ETH Bears to Target Sub-$1,700 on SEC and Binance Fallout

Key Insights:

• On Saturday, ETH fell by 4.83% to end the day at $1,752.
• Investor reaction to Binance-related news weighed on ETH and the broader market.
• The technical indicators remain bearish, signaling a return to sub-$1,700.

Ethereum (ETH) slid by 4.83% on Saturday. Following a 0.27% fall on Friday, ETH ended the day at $1,752. ETH ended the day at sub-$1,800 for the first time since May 13.

Tracking the broader market, ETH rose to an early morning high of $1,845 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $1,855, ETH fell to a mid-morning low of $1,716. ETH fell through the Major Support Levels to end the day at $1,752.

Binance and SEC News Sink ETH and the Crypto Market

It was a quiet Saturday session, with no US economic indicators or Fed chatter to distract investors.

The lack of influence from the US left staking statistics and the crypto news wires to provide direction.

News of SEC Nigeria ordering Binance Nigeria to stop targeting Nigerian investors was bearish. However, the Binance decision to pause US Dollar deposits and suspend US Dollar withdrawals left ETH and the broader market on the back foot.

The latest staking statistics reflected the bearish sentiment.

Staking Statistics Reflect Market Sentiment Toward SEC Moves

According to CryptoQuant, staking inflows tumbled from 43,008 ETH on Friday to 19,584 on Saturday. Significantly, inflows fell to the lowest level since April 12.

The total value staked flattened, with the staking statistics and the bearish ETH session influencing.

The overnight withdrawal profile was bullish, with principal withdrawals below normal levels. However, withdrawal projections for the morning session were bearish, with principal withdrawals projected to see an uptrend before returning to normal levels.

On Saturday, the net ETH staking balance tumbled by 67.11% to a surplus of 37,570, equivalent to $69.16 million. Deposits totaled 45,910 ETH versus withdrawals of 8,330 ETH.

According to TokenUnlocks, total pending withdrawals stood at 104,130 ETH, equivalent to approximately $182.19 million. Notably, the staking APR stood at 6.66%, down 1.33% over 24 hours.

The Day Ahead

It should be a quiet Sunday session for the crypto market. There are no US economic indicators or FOMC members to consider. The lack of stats and Fed chatter leave investors to track the crypto news wires and staking statistics.

SEC v Ripple, SEC v Binance, and SEC v Coinbase (COIN)-related news will remain focal points as investors await a response from US lawmakers on the SEC’s latest Court filings.

Ethereum Price Action

This morning, ETH was down 0.08% to $1,751. A mixed start to the day saw ETH rise to an early high of $1,753 before falling to a low of $1,744.

ETH Technical Indicators

Resistance & Support Levels

ETH needs to move through the $1,771 pivot to target the First Major Resistance Level (R1) at $1,826. A return to $1,800 would signal a breakout session. However, staking statistics and the crypto news wires must support a bullish session.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,900. The Third Major Resistance Level (R3) sits at $2,029.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,697 in play. However, barring another risk-off-fueled sell-off, ETH should avoid sub-$1,550. The Second Major Support Level (S2) at $1,642 should limit the downside.

The Third Major Support Level (S3) sits at $1,513.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below the 50-day EMA, currently at $1,831. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($1,826) and the EMAs would give the bulls a run at R2 ($1,900). However, failure to move through the 50-day EMA ($1,831) would leave S1 ($1,697) in view. A breakout from the 50-day EMA would send a bullish signal.