Ethereum Price – ETH Eyes $1,650 to Bring $1,700 into Play on ETH Staking Inflows

Key Insights:

• On Monday, it was a bearish session for bitcoin (BTC) and ethereum (ETH), though the losses were modest.
• Fed Fear and regulatory jitters weighed appetite, with Binance news also testing buyer appetite.
• ETH and BTC saw further losses this morning.

Ethereum (ETH) fell by 0.49% on Monday. Partially reversing a 2.88% gain from Sunday, ETH ended the day at $1,633.

After a range-bound morning, ETH rose to a mid-afternoon high of $1,665. Coming up against the First Major Resistance Level (R1) at $1,666, ETH slid to a low of $1,608. However, steering clear of the First Major Support Level (S1) at $1,602, ETH partially recovered to end the session at $1,633.

On Monday, bitcoin (BTC) fell by 0.25%. Partially reversing a 1.65% gain from Sunday, BTC ended the day at $23,502. The bearish session left BTC short of the $24,000 handle for the third consecutive day.

After a choppy morning, BTC rallied to a mid-afternoon high of $23,891. BTC broke through the First Major Resistance Level (R1) at $23,795 before hitting reverse. The reversal saw BTC slide to a late low of $23,131. BTC briefly fell through the First Major Support Level (S1) at $23,205 before ending the day at $23,502.

ETH Staking Inflows Remained Elevated ahead of the Shapella Upgrade

Following the news of Tron (TRX) founder Justin Sun staking 150,100 ETH on Lido (LDO) on Saturday, ETH staking inflows remained elevated on Monday.

According to CryptoQuant, total ETH staking inflows hit 179,328 ETH on Monday, up from 71,456 on Sunday but down from 198,560 on Saturday.

The surge in ETH staking inflows signaled investor support for today’s Sepolia upgrade and the Goerli upgrade in March. The Shapella upgrade was to occur at 04:04:47 UTC on February 28, after which validators can withdraw their staked ETH on the Beacon Chain.

However, the market paid little interest to the latest ETH staking inflow numbers as investors fretted over the Fed and regulatory risk.

The Day Ahead

Updates on the Shapella upgrade and ETH staking activity will influence. However, US regulatory activity and US lawmaker chatter will need continued monitoring. Investors should also track the crypto news wires for Binance and FTX updates and SEC v Ripple news that could move the dial.

US economic indicators and Fed chatter will draw interest this afternoon. A pickup in US consumer confidence would support a more aggressive Fed policy outlook to bring inflation to target.

While positive economic indicators are crypto market positive, a more aggressive Fed interest rate trajectory raises the threat of a US recession.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.20% to $1,630. A range-bound start to the day saw ETH rise to an early high of $1,636 before falling to a low of $1,627.

Technical Indicators

ETH needs to avoid a fall through the $1,630 pivot to target the First Major Resistance Level (R1) at $1,663 and the Monday high of $1,665. A return to $1,650 would signal a breakout session. However, Shanghai upgrade news and the crypto news wires should be ETH-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,692 and resistance at $1,700. The Third Major Resistance Level (R3) sits at $1,749.

A fall through the pivot would bring the First Major Support Level (S1) at $1,606 into play. However, barring another broad-based crypto market sell-off, ETH should avoid sub-$1,550. The Second Major Support Level (S2) at $1,578 should limit the damage. The Third Major Support Level (S3) sits at $1,521.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a mixed signal. Ethereum sat above the 100-day EMA, currently at $1,630. The 50-day EMA flattened on the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA, delivering mixed signals.

A move through the 50-day EMA ($1,633) would support a breakout from R1 ($1,663) to give the bulls a run at R2 ($1,692) and $1,700. However, a fall through the 100-day EMA (1,630) would bring S1 ($1,606) and the 200-day EMA ($1,600) into view. A move through the 50-day EMA would send a bullish signal.

Bitcoin (BTC) Price Action

This morning, BTC was down 0.31% to $23,428. A mixed start to the day saw BTC rise to an early high of $23,553 before falling to a low of $23,408.

Technical Indicators

BTC needs to move through the $23,508 pivot to target the First Major Resistance Level (R1) at $23,885 and the Monday high of $23,891. A return to $23,750 would signal a breakout session. The crypto news wires and Fed chatter should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $24,268. The Third Major Resistance Level (R3) sits at $25,028.

Failure to move through the pivot would leave the First Major Support Level (S1) at $23,125 in play. However, barring another crypto event-fueled crypto sell-off, BTC should avoid sub-$22,500. The Second Major Support Level (S2) at $22,748 should limit the downside.

The Third Major Support Level (S3) sits at $21,988.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. BTC sat below the 100-day EMA ($23,520). The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A move through the 100-day ($23,520) and 50-day ($23,618) EMAs would support a breakout from R1 ($23,885) to target R2 ($24,268). However, a fall through S1 ($23,125) would give the bears a run at the 200-day EMA ($22,918) and S2 ($22,748). A move through the 50-day EMA ($23,618) would send a bullish signal.