ETH Targets a Five Day Winning Streak and $2,000 on Staking Inflows

Bob Mason
Updated: Apr 1, 2023, 04:07 GMT+00:00

Staking inflows spiked on Friday, supporting a bullish ETH session. The upswing in staking comes despite increased regulatory scrutiny, a bullish signal.

ETH/USD - Tech Analysis - FX Empire.

In this article:

Key Insights:

  • On Friday, ethereum (ETH) extended its winning streak to four sessions, rising by 1.56% to end the day at $1,822.
  • US economic indicators and staking inflows supported the bullish end to the first quarter.
  • The technical indicators remain bullish, bringing $2,000 into view.

Ethereum (ETH) rose by 1.56% on Friday. Following a 0.06% gain on Thursday, ETH ended March up 13.49% to $1,822. Tracking the broader crypto market, ETH jumped by 52.4% in the first quarter. Notably, the quarterly gain was the second in five quarters.

A mixed start to the day saw ETH fall to a late morning low of $1,780. Steering clear of the First Major Support Level (S1) at $1,761, ETH rallied to an early afternoon high of $1,847. ETH broke through the First Major Resistance Level (R1) at $1,828 before easing back to end the day at $1,822.

Pre-Shapella ETH Staking Spikes to Deliver a Bullish Session

ETH staking inflows increased for the fourth consecutive day, a bullish signal. According to CryptoQuant, staking inflows jumped from 28,320 ETH on Thursday to 55,104 ETH on Friday. The upswing came despite intensifying regulatory scrutiny, which threatens investor access to crypto staking in the US.

ETH staking inflows spike.
ETH Staking Inflows 010423

The total value staked continued the uptrend this morning, delivering another bullish signal.

Total staking value trend sends bullish signals
Total Value Staked 010423

The Day Ahead

Investors should continue to monitor regulatory activity that will remain the focal point over the near term. However, updates from the SEC v Ripple case would likely mute anti-crypto rhetoric and news of regulatory activity.

With no external market forces for investors to consider, ETH staking inflows will continue to draw interest as the Shapella upgrade date approaches.

On Friday, softer-than-expected US inflation figures delivered riskier assets with afternoon support. The US Core PCE Price Index increased by 4.6% in February, year-over-year, versus 4.7% in January. US indices responded to the stats, supporting the bullish afternoon session. The NASDAQ Composite Index rose by 1.74% on Friday.

Ethereum (ETH) Price Action

At the time of writing, ETH was up 0.37 to $1,829. A mixed start to the day saw ETH fall to an early low of $1,820 before rising to a high of $1,843.

ETH finds early support.
ETHUSD 010423 Daily Chart

Technical Indicators

ETH needs to avoid the $1,816 pivot to target the First Major Resistance Level (R1) at $1,853. A move through the Friday high of $1,847 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 $1,883 and resistance at $1,900. The Third Major Resistance Level (R3) sits at $1,950.

A fall through the pivot would bring the First Major Support Level (S1) at $1,786 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 $1,749. The Third Major Support Level (S3) sits at $1,682.

ETH resistance levels in play above the pivot.
ETHUSD 010423 Hourly Chart

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 $1,780. 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 S1 ($1,786) and the 50-day EMA ($1,780) would support a breakout from R1 ($1,853) to target R2 ($1,883) and $1,900. However, a fall through S1 ($1,786) and the 50-day EMA ($1,780) would give the bears a run at the 100-day EMA ($1,750) and S2 ($1,749. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
ETHUSD 010423 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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