ETH Faces Sub-$1,850 as Investors Turn their Attention to the Fed

Key Insights:

• On Tuesday, ETH tracked the broader market into positive territory, gaining 1.61% to end the day at $1,890.
• ETF-related news provided ETH and the crypto market with much-needed support.
• The technical indicators remain bullish, signaling a return to $2,000.

Ethereum (ETH) gained 1.61% on Tuesday. Partially reversing a 2.05% loss from Monday, ETH ended the day at $1,890. Significantly, ETH avoided sub-$1,800 for the sixth consecutive session.

A mixed start to the day saw ETH slip to a first-hour low of $1,856. Steering clear of the First Major Support Level (S1) at $1,830, ETH rose to a late afternoon high of $1,913. ETH broke through the First Major Resistance Level (R1) at $1,899 before easing back to end the day at $1,890.

ETF-Related News and US Economic Indicators Delivered a Bullish Session

It was a busy Tuesday session. ETF-related news continued to fuel the latest broad-based crypto rally.

On Tuesday, news hit the wires of Fidelity planning to launch a Bitcoin spot ETF. The latest in a series of mainstream players targeting the crypto market via ETF products was crypto-positive.

Fidelity aims to join Blackrock (BLK) in giving investors exposure to cryptocurrencies. Fidelity is not alone in following in Blackrock’s footsteps. Invesco (IVZ) is among the big names to refile spot BTC ETF applications.

On Monday, news of The Hong Kong and Shanghai Banking Corporation (HSBC) allowing clients to trade BTC and ETH exchange-traded funds (ETFs) was also bullish.

US economic indicators also support a bullish session. Better-than-expected consumer confidence and core durable goods orders eased immediate fears of a Fed-fueled economic recession.

Staking Statistics Turned Bullish to Support the Tuesday Gains

According to CryptoQuant, staking inflows increased from 63,456 ETH on Monday to 104,288 on Tuesday. Significantly, ETH staking inflows broke through the 100,000 ETH threshold for the first time in five sessions.

However, staking APRs continued falling, signaling a possible pullback in staking inflows.

The overnight withdrawal profile was relatively bearish, with principal withdrawals at above-normal levels. However, withdrawal projections for the morning session were bullish. Projections show principal ETH withdrawals will fall to below-normal levels.

On Tuesday, the net ETH staking balance stood at a 22,430 ETH deficit (+13.36% over 24 hours), equivalent to a $42.04 million deficit. Deposits totaled zero versus withdrawals of 22,430 ETH.

According to TokenUnlocks, total pending withdrawals stood at 21,450 ETH, equivalent to approximately $39.97 million. Notably, the staking APR stood at 5.72%, down 1.38% over 24 hours. The downward trend in the staking APR remains a drag for staking inflows and is ETH price negative.

The Day Ahead

It is a quieter Wednesday session. There are no US economic indicators to influence, leaving Fed Chair Powell to move the dial. The markets are betting on hawkish comments and the Fed Chair may hold back from a deviation from the script ahead of the Core PCE Price Index numbers on Friday.

Beyond the economic calendar, crypto-ETF-related chatter and SEC v Ripple Court rulings would garner plenty of interest.

However, investors should also track the ETH staking statistics and SEC v Binance and SEC v Coinbase (COIN)-related news updates.

Ethereum Price Action

This morning, ETH was down 1.36% to $1,864. A mixed start to the day saw ETH rise to an early high of $1,891 before falling to a low of $1,856.

ETH Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. Ethereum sat above the 50-day EMA, currently at $1,857. The 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above S1 ($1,860) and the 50-day EMA ($1,857) would support a breakout from R1 ($1,917) to target R2 ($1,943) and $1,950. However, a fall through S1 ($1,860) and the 50-day EMA ($1,857) would bring the 100-day EMA ($1,831) and S2 ($1,829) into view. A fall through the 50-day EMA would send bearish signals.

Resistance & Support Level