ETH Eyes Sub-$1,800 on Staking Inflow Stats and Debt Ceiling Uncertainty

Key Insights:

• On Saturday, ETH joined the broader crypto market in the green for a second session, gaining 0.39% to end the day at $1,820.
• Staking statistics and hopes of a US debt ceiling deal delivered support.
• The technical indicators remained bearish, signaling a return to sub-$1,700.

Ethereum (ETH) rose by 0.39% on Saturday. Following a 0.67% gain on Friday, ETH ended the day at $1,820. Despite the bullish session, ETH fell short of the $1,850 handle for the tenth consecutive session.

A bearish start to the day saw ETH fall to an early morning low of $1,807. Steering clear of the First Major Support Level (S1) at $1,797, ETH rose to a late afternoon high of $1,830. Coming up against the First Major Resistance Level (R1) at $1,830, ETH eased back to end the day at $1,820.

US Debt Ceiling News and Staking Statistics Delivered Support

According to CryptoQuant, staking inflows increased from 130,208 ETH on Friday to 135,776 on Saturday. Staking inflows remained elevated compared to recent weekend levels.

The total value continued climbing higher, supported by ETH staking inflows and another bullish ETH session.

The withdrawal profile was also bullish. Overnight, principal withdrawals fell to below-normal levels. However, withdrawal projections for the morning session were more bearish, with principal ETH withdrawals expected to spike this morning.

However, a sharp decrease in principal withdrawals and a spike in staking inflows would deliver a bullish session. On Saturday, the net ETH staking balance fell from a surplus of 216,960 ETH to 153,640 ETH, equivalent to $277.99 million. Deposits totaled 169,860 ETH versus withdrawals of 16,220 ETH.

According to TokenUnlocks, total pending withdrawals stood at 87,910 ETH, equivalent to approximately $159.67 million. Notably, the staking APR stood at 8.91%, unchanged over 24 hours.

News of US President Joe Biden and Speaker of the House Kevin McCarthy planning to resume talks as early as today was also bullish.

The Day Ahead

It is a quiet day for ETH, with US debt ceiling-related updates remaining the focal point.

However, staking statistics and the withdrawal profile will influence. A further rise in staking inflows and a wider net staking surplus would support a bullish session.

Investors should also track the crypto news wires for SEC v Ripple updates, with Binance and Coinbase (COIN) remaining in the spotlight.

Ethereum Price Action

This morning, ETH was down 0.22% to $1,816. A mixed start to the day saw ETH rise to an early high of $1,830 before falling to a low of $1,814.

ETH Technical Indicators

Resistance & Support Levels

ETH needs to move through the $1,819 pivot to target the First Major Resistance Level (R1) at $1,831. A return to $1,830 would signal a breakout session. However, Staking statistics and US debt ceiling updates must support a bullish session.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,842 and resistance at $1,850. The Third Major Resistance Level (R3) sits at $1,865.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,808 in play. However, barring a risk-off-fueled sell-off, ETH should avoid sub-$1,780. The Second Major Support Level (S2) at $1,796 should limit the downside. The Third Major Support Level (S3) sits at $1,773.

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 $1,818. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($1,818) would support a breakout from R1 ($1,831) and 100-day EMA ($1,833) to target R2 ($1,842) and the 200-day EMA ($1,848). However, failure to move through the 50-day EMA ($1,818) would leave S1 ($1,808) in view.

A move through the 50-day EMA would send a bullish signal.