ETH Near Term Target Remains $2,000 as Staking Inflows Trend Higher
Key Insights:
- On Thursday, ethereum (ETH) bucked the broader market trend, rising by 0.06% to end the day at $1,794.
- A continued upward trend in ETH staking inflows delivered support as investors eye the April Shapella upgrade.
- The technical indicators remain bullish, bringing $2,000 into view.
Ethereum (ETH) rose by 0.06% on Thursday. Following a 1.07% gain on Wednesday, ETH ended the day at $1,794. ETH revisited the $1,800 hand for the second consecutive session and extended its winning streak to three.
A bullish start to the day saw ETH rise to an early morning high of $1,830. ETH broke through the First Major Resistance Level (R1) at $1,822 before sliding to a late afternoon low of $1,763. Finding support at the First Major Support Level (S1) at $1,768, ETH retested resistance at $1,800 before easing back.
Pre-Shapella Staking Movements Deliver a Bullish Signal
ETH staking inflows increase for a third consecutive day, a bullish signal. According to CryptoQuant, staking inflows rose from 25,824 ETH on Wednesday to 28,320 on Thursday. The upswing came despite the SEC’s plans to intensify scrutiny of the digital asset space, with crypto staking an SEC focal point.
The total value staked dipped on Thursday before resuming the uptrend this morning, another bullish signal.
The Day Ahead
Following the SEC request to US lawmakers for sizeable funding, regulatory activity will remain the focal point over the near term. However, we expect rulings from the SEC v Ripple case to materially alter the US regulatory landscape and remove SEC powers to regulate the digital asset space.
Following the CFTC filing against Binance and the classification of ETH, LTC, and BTC as commodities, CFTC chatter will also influence.
This afternoon, US economic indicators will likely guide ETH and the broader crypto market. US Core PCE Price Index numbers will be in focus, with a pickup in US inflationary pressure likely to weigh on riskier assets. However, ETH staking inflows will continue to draw interest as the Shapella upgrade date nears.
Ethereum (ETH) Price Action
At the time of writing, ETH was up 0.55% to $1,804. A mixed start to the day saw ETH fall to an early low of $1,790 before rising to a high of $1,818.
Technical Indicators
ETH needs to avoid the $1,796 pivot to target the First Major Resistance Level (R1) at $1,828 and the Thursday high of $1,830. A return to $1,820 would signal a breakout session. However, 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 $1,863 and resistance at $1,900. The Third Major Resistance Level (R3) sits at $1,930.
A fall through the pivot would bring the First Major Support Level (S1) at $1,761 into play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,750 and the Second Major Support Level (S2) at $1,729. The Third Major Support Level (S3) sits at $1,662.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,772. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA, delivering bullish signals.
A hold above the 50-day EMA ($1,772) would support a breakout from R1 ($1,828) to target R2 ($1,863) and $1,900. However, a fall through the 50-day EMA ($1,772 would give the bears a run at S1 ($1,761) and the 100-day EMA ($1,743). A fall through the 50-day EMA would send a bearish signal.
