ETH Bulls Eye $1,950 to Bring $2,000 into View on Renewed Optimism

Key Insights:

• ETH joined the broader crypto market in positive territory on Monday, gaining 0.97% to end the day at $1,881.
• Fed chatter and Standard Chartered Bank price predictions delivered a bullish session.
• The technical indicators turned bullish, signaling a return to $1,950.

Ethereum (ETH) gained 0.97% on Monday. Reversing a 0.16% fall from Sunday, ETH ended the day at $1,881. ETH revisited the $1,900 handle for the first time in four sessions.

Ethereum Price Action

This morning, ETH was up 0.15% to $1,884. A mixed start to the day saw ETH rise to an early high of $1,885 before falling to a low of $1,877.

Daily Chart

Despite the bullish session, the Daily Chart showed ETH/USD retreat to below the lower level of the $1,930 – $1,900 resistance band.

However, ETH/USD currently sits above the 50-day ($1,853) and 200-day ($1,759) 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 52.52 reading signaled a moderately bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a breakout from the $1,900 – $1,930 resistance band to target $1,950.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at the $1,900 psychological level. ETH/USD sits at the 50-day ($1,884) and above the 200-day EMA ($1,862) EMAs, sending bullish near-term and longer-term signals.

Significantly, the 50-day EMA widened from the 200-day EMA, signaling a breakout from the 50-day EMA ($1,884) to target the $1,900 – $1,930 resistance band. However, a fall through the 50-day EMA would bring the 200-day EMA ($1,862) sub-$1,800 into view.

The 14-4H RSI reading of 53.11 indicates a bullish stance, with buying pressure outweighing selling pressure. Significantly, the bearish RSI aligns with the EMAs and supports a return to $1,900.

Staking Statistics Send Bearish Signals

According to CryptoQuant, staking inflows increased from 9,152 ETH on Sunday to 26,016 on Monday. However, staking inflows remained below recent trends, a bearish signal.

The overnight withdrawal profile was relatively bearish, with principal withdrawals rising to above-normal levels. However, withdrawal projections for the morning session are bullish. Projections show ETH withdrawal levels will sit at below-normal levels before a late-morning spike.

On Monday, the net ETH staking balance stood at an 8,230 ETH surplus ($15.36 million), down 68.61% over 24 hours. Deposits totaled 11,660 versus withdrawals of 3,440 ETH.

According to TokenUnlocks, total pending withdrawals stood at 82,970 ETH, equivalent to approximately $156.16 million. Notably, the staking APR stood at 5.58%, down 0.53% over 24 hours. The downward trend in the staking APR and the spike in pending withdrawals are ETH price negative.

Bullish Price Projections and the Fed Delivered a Bullish Monday

It was a relatively busy session. While there were no US economic indicators or crypto events to provide direction, Fed chatter eased fears of more aggressive policy moves to tame inflation.

Several FOMC members, including FOMC members Raphael Bostic and Michael Barr, signaled the near-term end to the Fed monetary policy tightening cycle.

BTC price projections also provided support. On Monday, banking giant Standard Chartered Bank delivered BTC price projections, predicting a BTC return to $50,00 in 2023 and possibly hitting $120,000 in 2024. The bank attributed the bullish forecast to the likelihood of Bitcoin miners hoarding BTC, which would reduce the supply.

The Day Ahead

It is a quiet Tuesday. There are no US economic indicators to draw interest, leaving Fed chatter to move the dial. FOMC member Bullard is on the calendar to speak today.

However, beyond the US economic calendar and the staking statistics, investors should track ETF chatter, with Binance and SEC v Ripple-related news also focal points.