ETH Bulls to Target $1,900 on Easing Debt Ceiling Angst and Staking Stats

Key Insights:

• On Wednesday, ETH bucked the broader market trend, falling by 0.11% to end the day at $1,823.
• Staking statistics and sentiment toward the US debt ceiling delivered support.
• The technical indicators remained bearish, signaling a return to sub-$1,700.

Ethereum (ETH) fell by 0.11% on Wednesday. Partially reversing a 0.44% gain from Tuesday, ETH ended the day at $1,823. The bearish session left ETH short of the $1,850 handle for the seventh consecutive session.

A mixed start to the day saw ETH rise to an early morning high of $1,837. Falling short of the First Major Resistance Level (R1) at $1,840, ETH fell to an early afternoon low of $1,784. ETH fell through the First Major Support Level (S1) at $1,804 before a partial recovery to end the day at $1,823. The Second Major Support Level (S2) at $1,782 limited the downside.

Staking Statistics and Withdrawals Turned Bearish

According to CryptoQuant, staking inflows decreased from 153,536 ETH on Tuesday to 118,176 on Wednesday. While staking inflows declined, inflows remained above 100,000, a bullish price signal.

The total value continued climbing higher, supported by ETH staking inflows.

However, the withdrawal profile was more bearish. Principal withdrawals spiked, which likely impacted buyer appetite. However, withdrawal projections for the morning session were more bullish, with principal ETH withdrawals falling to below-normal levels.

Another sharp increase in staking inflows and subdued principal withdrawals would support another bullish session. On Wednesday, the net ETH staking balance surged from a surplus of 89,500 ETH to 138,510 ETH, equivalent to $251.75 million. Deposits totaled 161,850 ETH versus withdrawals of 23,340 ETH.

According to TokenUnlocks, total pending withdrawals stood at 49,270 ETH, equivalent to approximately $89.97 million. Notably, the staking APR stood at 8.45%, down 1.52%.

While the staking statistics and withdrawal profile tested buyer appetite, progress towards a US debt ceiling deal provided support.

The Day Ahead

Staking statistics and the withdrawal profile will continue to draw interest. A further decline in staking APR could lead to a fall in staking inflows and a spike in principal withdrawals, a bearish scenario.

Investors should monitor the crypto news wires throughout the session. SEC v Ripple Court rulings will move the dial, with Binance and Coinbase (COIN) also in the spotlight.

This afternoon, US economic indicators, Fed chatter, and debt ceiling-related news also need consideration. US jobless claims and the Philly Fed Manufacturing Index will draw interest. An unexpected rise in jobless claims and a fall in the Manufacturing Index would fuel recessionary jitters.

Ethereum Price Action

This morning, ETH was up 0.17% to $1,826. A mixed start to the day saw ETH fall to an early low of $1,818 before rising to a high of $1,828.

ETH Technical Indicators

Resistance & Support Levels

ETH needs to avoid the $1,815 pivot to target the First Major Resistance Level (R1) at $1,845. A move through the Wednesday high of $1,837 would signal a breakout session. However, ETH staking statistics and US debt ceiling updates must support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,868 and resistance at $1,900. The Third Major Resistance Level (R3) sits at $1,921.

A fall through the pivot would bring the First Major Support Level (S1) at $1,792 into play. However, barring a risk-off-fueled sell-off, ETH should avoid sub-$1,750. The Second Major Support Level (S2) at $1,762 should limit the downside. The Third Major Support Level (S3) sits at $1,709.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a mixed signal. Ethereum sat below the 100-day EMA, currently at $1,842. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, delivering mixed signals.

A move through the 100-day EMA ($1,842) and R1 ($1,845) would support a breakout from the 200-day EMA ($1,855) to give the bulls a run at R2 ($1,868) and $1,900. However, a fall through the 50-day EMA ($1,823) would bring S1 ($1,792) into view.

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