ETH Bulls to Retarget $2,000 as Shapella Upgrade Nears

Key Insights:

• On Friday, ETH saw red for a second consecutive session, falling by 0.43% to end the day at $1,865.
• US economic indicators and a holiday pullback in staking inflows weighed on ETH.
• However, the technical indicators remain bullish, signaling a return to $2,000.

Ethereum (ETH) fell by 0.43% on Friday. Following a 1.89% loss on Thursday, ETH ended the day at $1,865. ETH fell short of the $1,900 handle for the first time in three sessions.

A mixed start to the day saw ETH rise to an early high of $1,883. Falling short of the First Major Resistance Level (R1) at $1,905, ETH fell to a mid-morning low of $1,842. ETH fell through the First Major Support Level (S1) at $1,848 before finding afternoon support to wrap up the day at $1,865.

US Jobs Report and Holiday ETH Staking Inflows Weigh

ETH taking inflows hit reverse on Friday. According to CryptoQuant, staking inflows fell from 18,560 ETH on Thursday to 12,000 on Friday. However, inflows avoided sub-10,000 despite the Good Friday holidays, limiting the impact on ETH.

ETH staking inflows and total value staked numbers will draw more interest as the Shapella upgrade date approaches.

Despite the bearish session and pullback in staking inflows, the upward trend in total value stake continued.

While crypto-market-related news remains key, The US Jobs Report fueled bets of a 25-basis point Fed interest rate hike in May, testing buyer appetite.

The Day Ahead

Investors should continue tracking staking inflows and total value staked trends for direction.

Fed commentary following the Friday US Jobs Report will influence, with cryptos showing price sensitive to Fed policy goals.

However, a lack of Fed chatter will leave investors to consider the ongoing SEC v Ripple case. We expect continued investor sensitivity to regulatory and US lawmaker activity. Binance and Coinbase (COIN) are currently in the spotlight.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.19% to $1,861. A bearish start to the day saw ETH fall from an early high of $1,866 to an early low of $1,856.

Technical Indicators

ETH needs to move through the $1,863 pivot to target the First Major Resistance Level (R1) at $1,885. A return to $1,875 would signal a breakout session. However, the crypto news wires should be crypto-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,904. The Third Major Resistance Level (R3) sits at $1,945.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,844 in play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,800. The Second Major Support Level (S2) at $1,822 should limit the downside. The Third Major Support Level (S3) sits at $1,781.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,844. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($1,844) would support a breakout from R1 ($1,885) to target R2 ($1,904). However, a fall through S1 ($1,844) and the 50-day EMA ($1,844) would bring S2 ($1,822) into play. A fall through the 50-day EMA would send a bearish signal.