ETH Bulls Need a Market Friendly US CPI Report to Target $1,950

Key Insights:

• ETH bucked the broader market trend on Tuesday, falling 0.11% to end the day at $1,879.
• Staking statistics left ETH on the backfoot, with falling staking APRs and elevated pending withdrawals weighing.
• However, the technical indicators remained bullish, signaling a return to $1,950.

Ethereum (ETH) slipped by 0.11% on Tuesday. Partially reversing a 0.97% gain from Monday, ETH ended the day at $1,879. ETH fell short of the $1,900 handle for the fourth time in five sessions.

Ethereum Price Action

This morning, ETH was up 0.32% to $1,885. A range-bound start to the day saw ETH fall to an early low of $1,877 before rising to a high of $1,888.

Daily Chart

The Daily Chart showed ETH/USD hover below the lower level of the $1,930 – $1,900 resistance band.

However, ETH/USD currently sits above the 50-day ($1,854) and 200-day ($1,760) 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 52.67 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 above the 50-day ($1,882) and the 200-day ($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 ($1,882) 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 53.88 indicates a bullish stance, with buying pressure outweighing selling pressure. Significantly, the bullish RSI aligns with the EMAs and supports a return to $1,900.

Staking Statistics Signal Improved Sentiment

According to CryptoQuant, staking inflows increased from 26,016 ETH on Monday to 68,288 on Tuesday. Significantly, staking inflows reached the highest level since June 27.

The overnight withdrawal profile was relatively bullish, with principal withdrawals briefly spiking to above-normal levels. However, withdrawal projections for the morning session are bullish. Projections show withdrawal levels will sit at below-normal levels throughout the morning session.

On Monday, the net ETH staking balance stood at a 19,570 ETH surplus ($36.54 million), up 138% over 24 hours. Deposits totaled 28,820 versus withdrawals of 9,250 ETH.

According to TokenUnlocks, total pending withdrawals stood at 60,030 ETH, equivalent to approximately $113.02 million. Notably, the staking APR stood at 5.56%, down 0.36% over 24 hours. While the downward trend in the staking APR is ETH price negative, a decline in pending withdrawals is positive.

Fed Uncertainty Ahead of the US CPI Report Leaves ETH on the Back Foot

It was a quiet Tuesday session, with no US economic indicators to move the dial. There were also no crypto events to influence investor sentiment.

The lack of external market forces left ETH range-bound throughout the session. An upward trend in staking withdrawals and a downward trend in the staking APR likely contributed to the Tuesday loss.

The Day Ahead

It is a busier Wednesday session. The US CPI Report will influence investor sentiment this afternoon.

Crypto market sensitivity to the Fed remains in place, leaving  the crypto market exposed to inflation numbers and bets on Fed interest rate moves.

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.