ETH Bulls Need a Rebound in Staking Inflows to Target $1,850

Key Insights:

• On Sunday, ETH joined the broader crypto market in the red, falling by 1.48% to end the day at $1,795.
• ETH staking inflows continued falling, leaving ETH at sub-$1,800 for the first time in three sessions.
• However, the technical indicators remain bullish, supporting a run at $2,000.

Ethereum (ETH) fell by 1.48% on Sunday. After a flat Saturday session, ETH ended the week up 1.10% to $1,795.

A mixed start to the day saw ETH rise to a mid-morning high of $1,826. Falling short of the First Major Resistance Level (R1) at $1,840, ETH fell to an early evening low of $1,773. ETH fell through the First Major Support Level (S1) at $1,806 and briefly through the Second Major Support Level (S2) at $1,791 before wrapping up the day at $1,795.

Pre-Shapella ETH Staking Slides to Lowest Level Since March 5

ETH staking inflows fell for the second consecutive day and the second time in six sessions.

According to CryptoQuant, staking inflows fell from 8,380 ETH on Saturday to 6,208 ETH on Sunday. Inflows were the lowest since March 5, when staking inflows tumbled to 3,552 ETH.

Year-to-date, staking inflows have fallen to their lowest levels on Sundays, easing immediate fear of a shift in sentiment toward the Shapella upgrade and unstaking intentions.

Investors would need to see a resumption of the upward trend in staking inflows and total value staked to support a bullish ETH response to the Shapella upgrade.

The total value staked also fell further back this morning, supporting the bearish start to the Monday session.

There were no other ethereum-related updates to distract investors from the increasing regulatory scrutiny that likely contributed to the weekend pullback in staking inflows.

The Day Ahead

Economic data from the US will influence the afternoon session, with the ISM Manufacturing PMI in focus. Weak numbers could fuel recessionary fears following disappointing PMI numbers out of China this morning.

SEC v Ripple case updates would need consideration, with Court rulings in favor of Ripple likely to deliver a breakout session. Investors should also continue to monitor regulatory and lawmaker activity that will likely move the dial.

However, a quiet session would leave staking movements to influence.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.57% to $1,785. A mixed start to the day saw ETH rise to an early high of $1,796 before falling to a low of $1,783.

Technical Indicators

ETH needs to move through the $1,798 pivot to target the First Major Resistance Level (R1) at $1,823 and the Sunday high of $1,826. A return to $1,800 would signal a breakout session. However, the crypto news wires should be crypto-friendly to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,851. The Third Major Resistance Level (R3) sits at $1,904.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,770 in play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,750 and the Second Major Support Level (S2) at $1,745. The Third Major Support Level (S3) sits at $1,692.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 100-day EMA, currently at $1,763. 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 move through the 50-day EMA ($1,791) would support a breakout from R1 ($1,823) to target R2 ($1,851). However, failure to move through the 50-day EMA ($1,791) would bring S1 ($1,770) and the 100-day EMA ($1,763). A move through the 50-day EMA would send a bullish signal.