ETH Bears Eye a Return to $1,800 on New SEC Charges

Key Insights:

• ETH joined the broader market in the red on Monday, falling 0.27% to end the day at $1,857.
• The crypto news wires weighed on investor sentiment, with staking inflows reflecting the mood.
• Shorter-term technical indicators remain bearish, signaling a fall to sub-$1,800.

Ethereum (ETH) fell by 027% on Monday. Following a 1.06% loss on Sunday, ETH ended the day at $1,857. The bearish mood left ETH short of $1,900 for the eighth consecutive session.

Ethereum Price Action

This morning, ETH was down 1.53% to $1,828. A bearish start to the day saw ETH slide from an early high of $1,864 to a low of $1,817. Sentiment to new SEC charges against Peter Heart, HEX, PulseX, and PulseChain for the illegal sales of unregistered securities spooked investors.

Daily Chart

The Daily Chart showed ETH hovering above the $1,815 – $1,795 support band. However, ETH sat below the 50-day EMA ($1,870) while holding above the 200-day ($1,783), sending bearish near-term but bullish longer-term price signals. Notably, the 50-day EMA narrowed to the 200-day EMA, a bearish price signal.

Looking at the 14-Daily RSI, the 41.02 reading reflects bearish sentiment, supporting a fall through the $1,815 – $1,795 support band to target the 200-day EMA ($1,783). However, an ETH move through the 50-day EMA ($1,870) would support a breakout from the upper band of the $1,865 – $1,895 support band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at $1,850. ETH sits above the $1,815 – $1,795 support band. However, ETH stood below the 50-day ($1,870) and 200-day ($1,877) EMAs, sending bearish near and longer-term price signals.

A return to $1,850 would give the bulls a run at the 50-day and 200-day EMAs. A move through the 50-day EMA would support a return to $1,900. However, failure to move through the 50-day EMA ($1,870) would leave the $1,815 – $1,795 support band in view.

The 14-4H RSI reading of 24.93 shows ETH in oversold territory, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, supporting a fall through the $1,815 – $1,795 support band.

A Curve Finance Exploit and SEC Activity Weighed

The crypto news wires influenced investor sentiment at the start of the week. A Curve Finance exploit highlighted the ongoing troubles across the digital asset space. The exploit followed a recent Gary Gensler interview, where the SEC Chair reminded the markets of his view on the digital asset space.

However, news of the SEC filing charges against Peter Heart, Hex, PulseX, and PulseChain for the unregistered offering and sale of crypto asset securities to retail investors and defrauding investors by using investor monies to fund his lavish lifestyle, among other charges, was also bearish.

Staking Statistics Send Mixed Price Signals

According to CryptoQuant, staking inflows fell from 34,112 ETH on Sunday to 28,992 on Monday. Significantly, inflows fell to sub-30,000 for the second time in seven days.

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

On Monday, the net ETH staking balance stood at a 24,930 ETH surplus ($46.71 million), up 23.6% over 24 hours. Deposits totaled 36,230 versus withdrawals of 11,300 ETH.

According to TokenUnlocks, total pending withdrawals stood at 35,020 ETH, equivalent to approximately $64.02 million. Notably, the staking APR stood at 5.71%, up 3.44% over 24 hours. While the staking APR upward trend was bullish, the decline in staking inflows was a bearish price scenario.