ETH Bulls to Retarget $2,000 on Jump in Staking Inflows

Key Insights:

• On Thursday, ETH ended a four-day winning streak, falling 0.95% to end the day at $1,872.
• Staking statistics failed to move the dial, with economic growth jitters and a hawkish Fed weighing on the broader crypto market.
• However, the technical indicators remain bullish, signaling a return to $2,000.

Ethereum (ETH) fell by 0.95% on Thursday. Partially reversing a 5.41% gain from Wednesday, ETH ended the day at $1,827. Significantly, ETH tested resistance at $1,950 for the first time since May 7.

A bullish start to the day saw ETH rise to an early high of $1,934. Coming up against the First Major Resistance Level (R1) at $1,932, ETH fell to an early afternoon low of $1,867. However, steering clear of the First Major Support Level (S1) at $1,817, ETH retested resistance at $1,900 before ending the day at $1,872.

A Hawkish Fed Chair and Recession Jitters Weighed

It was a busy afternoon session, with US labor market numbers and Fed Chair Powell in the spotlight.

Hawkish Fed Chair Powell testimony and a surprise Bank of England 50-basis point interest rate hike weighed on riskier assets. The BoE move showed the willingness of central banks to tame inflation at any cost. Significantly, the move also raised the prospects of a UK recession amidst increasing fear of a central-bank-fueled global recession.

However, the downside was modest when considering the return to $1,900 early in the session. Sentiment toward the crypto market has improved following crypto moves by Blackrock (BLK) and other big names.

Staking Statistics Signal Bullish Sentiment

According to CryptoQuant, staking inflows surged from 81,664 ETH on Wednesday to 151,808 on Thursday. Significantly, ETH broke through the 100,000 ETH threshold for the first time in 20 sessions.

The total value staked climbed at a faster pace, with the jump in staking inflows and a widening in the net staking balance supporting the upswing.

However, the overnight withdrawal profile was bearish, with principal withdrawals at above-normal levels. Withdrawal projections for the morning session remained bearish. Projections show principal ETH withdrawals to remain elevated compared to normal withdrawal levels.

On Tuesday, the net ETH staking balance surged by 105.4% to a net surplus of 54,020 ETH, equivalent to $99.27 million. Deposits totaled 67,370 ETH versus withdrawals of 13,350 ETH.

According to TokenUnlocks, total pending withdrawals stood at 52,680 ETH, equivalent to approximately $99.26 million. Notably, the staking APR stood at 5.98%, flat over 24 hours.

The Day Ahead

It is a busy Friday session. After two days of Fed Chair Powell testimony, FOMC members Bullard and Bostic are on the calendar to speak today. Hawkish chatter would weigh on riskier assets as investors grapple with the increasing threat of a global recession.

However, the crypto news wires and the latest staking statistics will also provide direction. A pickup in the staking APR and a spike in the net staking surplus would send bullish signals. Market sentiment must remain bullish to support an ETH return to $2,000.

While the Fed and the staking statistics will move the dial, investors should monitor the crypto wires for SEC v Ripple, SEC v Binance, and SEC v Coinbase (COIN)-related news.

Ethereum Price Action

This morning, ETH was up 0.67% to $1,885. A mixed start to the day saw ETH fall to an early low of $1,863 before rising to a high of $1,887.

ETH Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. Ethereum sat above the 200-day EMA, currently at $1,802. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 200-day EMA ($1,802) would support a breakout from R1 ($1,915) to target R2 ($1,958) and $2,000. However, a fall through S1 ($1,848) would bring S2 ($1,824) and the 200-day EMA ($1,802) into view. An ETH slide through the 50-day EMA would send a bearish signal.

Resistance & Support Level