ETH Bears Eye Sub-$1,850 to Deliver a Six Day Losing Streak

Key Insights:

• ETH extended the losing streak to five sessions on Tuesday, falling 0.73% to end the day at $1,898.
• Sentiment toward the SEC and regulatory chatter left ETH in the red.
• The shorter-term technical indicators turned bearish, signaling a fall to sub-$1,850.

Ethereum (ETH) fell by 0.73% on Tuesday. Following a 0.62% loss on Monday, ETH ended the day at $1,898. ETH ended the day at sub-$1,900 for the first time in six sessions.

Ethereum Price Action

This morning, ETH was up 0.72% to $1,912. A bullish start to the day saw ETH rise from an early low of $1,897 to a high of $1,914.

Daily Chart

The Daily Chart showed ETH/USD sitting above the $1,895 – $1,865 support band after testing the upper level of the support band this morning.

However, ETH/USD currently sits above the 50-day ($1,873) and 200-day ($1,772) EMAs, signaling bullish momentum over the near and long term. Notably, the 50-day EMA widened further from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 52.87 reading signaled a moderately bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a breakout from $1,950 to target the $2,075 – $2,105 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at the $1,950 psychological level. ETH/USD sits below the $2,075 – $2,105 resistance band and the 50-day EMA ($1,913). However, ETH remains above 200-day EMA ($1,883), sending bearish near-term but bullish longer-term price signals.

Significantly, the 50-day EMA narrowed to the 200-day EMA, signaling a return to sub-$1,900 to retarget the $1,895 – $1,865 support band and the 200-day EMA ($1.883).

However, a move through the 50-day EMA ($1,913) would bring $1,950 and the $2,075 – $2,105 resistance band into view.

The 14-4H RSI reading of 48.86 sends moderately bearish ETH price signals, with selling pressure outweighing buying pressure. Significantly, the bearish RSI suggests a return to sub-$1,900 to bring the $1,895 – $1,865 support band and the 200-day EMA ($1,883) into view.

G20 Regulatory Chatter Overshadows US Lawmaker Scrutiny of the SEC

It was a busy Tuesday session, with the crypto news wires influencing investor sentiment. While the SEC considers its options after the SEC v Ripple Court rulings, regulatory chatter drew interest on Tuesday.

News of the Financial Stability Board (FSB) highlighting the need for uniformity and rigor weighed on investor sentiment.

This week, the FSB introduced a regulatory framework to address the potential risks that cryptos pose to financial stability. Importantly, FSB also aims to deliver a global regulatory framework that promotes the comprehensiveness and international consistency of regulatory and supervisory approaches based on the principle of ‘same activity, same risk, same regulation.’

The prospects of more rigid oversight likely dampened the mood.

US lawmaker chatter failed to provide support, despite the Republican side of the aisle targeting the SEC on Tuesday.

Ripple CEO Brad Garlinghouse shared a letter from Republican Ritchie Torres to SEC Chair Gensler.

Torres called the SEC v Ripple Court ruling the Torres Doctrine, saying the Court decision sets a clear rule that should bear the name of Judge Torres, who has brought long overdue legal clarity to the chaos of crypto regulation.

Torres also noted that,

“The tenuous legal foundation for the litigation against Coinbase has come crashing down, and rightfully so.”

However, hopes of a settlement on the remaining SEC charges against Ripple provided support.

On Monday, Judge Sarah Netburn issued a Court Order calling on the SEC and Ripple to find three mutually convenient dates to schedule a settlement conference. The order is on the basis that both parties believe it would be productive at this time.

With the threat of an appeal sending XRP back to sub-$0.70 shortly after the SEC v Ripple ruling, hopes of a settlement on the outstanding charges against Ripple would end a likely lengthy period of uncertainty for XRP and the US digital asset space. ETH would benefit from US regulatory clarity.

Staking Statistics Failed to Influence with Inflows on the Lower Side

According to CryptoQuant, staking inflows fell from 41,344 ETH on Monday to 35,904 on Tuesday. Significantly, staking inflows remained at below-normal trends, a bearish price signal.

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

On Tuesday, the net ETH staking balance stood at a 26,420 ETH surplus ($50.58 million), up 19.10% over 24 hours. Deposits totaled 42,300 versus withdrawals of 15,880 ETH.

According to TokenUnlocks, total pending withdrawals stood at 29,350 ETH, equivalent to approximately $56.04 million. Notably, the staking APR stood at 5.54%, unchanged over 24 hours. While the downward trend in the staking APR is ETH price negative, the rise in the pending withdrawals was also negative.