ETH Bulls Need a Return to $1,950 to Target $2,000 on Lummis Chatter

Key Insights:

• ETH tracked the broader market in negative territory for a third consecutive session on Sunday, falling 0.41% to end the day at $1,924.
• A quiet Sunday session left ETH in another range-bound session as investors considered the threat of the SEC appealing the SEC v Ripple Court ruling.
• However, the technical indicators remained bullish, signaling a return to $2,000.

Ethereum (ETH) fell by 0.41% on Sunday. Following a 0.36% loss on Saturday, ETH ended the week up 3.24% to $1,924. Despite the bearish session, ETH avoided sub-$1,900 for the third consecutive session.

Ethereum Price Action

This morning, ETH was up 0.18% to $1,927. A range-bound start to the day saw ETH fall to an early low of $1,920 before rising to a high of $1,929.

Daily Chart

The Daily Chart showed ETH/USD sitting below the $2,075 – $2,105 resistance band.

However, ETH/USD currently sits above the 50-day ($1,870) and 200-day ($1,769) 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 54.87 reading signaled a bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a run at 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. However, ETH remains above the 50-day ($1,919) and 200-day ($1,881) EMAs, sending bullish near and longer-term signals.

Significantly, the 50-day EMA pulled away from the 200-day EMA, signaling a return to $2,000 to target the $2,075 – $2,105 resistance band.

However, a fall through the 50-day EMA ($1,919) would bring the $1,895 – $1,865 support band and the 200-day EMA ($1,881) into view.

The 14-4H RSI reading of 49.43 sends bearish ETH price signals, with selling pressure outweighing buying pressure. Significantly, the bearish RSI suggests a fall through the 50-day EMA to target the $1,895 – $1,865 support band.

Staking Inflows Slide on Uncertainty over SEC Appeal

According to CryptoQuant, staking inflows fell from 27,168 ETH on Saturday to 24,544 on Sunday. Significantly, staking inflows remained at below-normal trends, a bearish price signal.

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

On Sunday, the net ETH staking balance stood at a 28,420 ETH surplus ($54.97 million), down 69.32% over 24 hours. Deposits totaled 31,460 versus withdrawals of 3,040 ETH.

According to TokenUnlocks, total pending withdrawals stood at 30,280 ETH, equivalent to approximately $58.32 million. Notably, the staking APR stood at 5.54%, down 0.18% over 24 hours. While the downward trend in the staking APR is ETH price negative, the slide in the net staking balance was also negative.

SEC Appeal Chatter Weighed on Investor Sentiment

It was a quiet Sunday session, with no crypto events to move the dial. A downward trend in staking inflows reflected mixed sentiment toward the SEC v Ripple Court ruling, with appeal chatter continuing to do the rounds.

Former SEC attorney John Reed Stark had a less favorable view of the Court ruling. Stark had this to say about the Programmatic Sales ruling,

“The transformation from a token to becoming ‘not a security’ occurs because the retail trader is presumed not to understand what they’re buying and, as is the case with any securities exchange, not to know specifically who the seller is. This argument seems contrary to sacrosanct and basic investor protection principles.”

Stark added,

“Whether or not an investor reads, or is unable to read, materials relating to their purchase should not ever determine the level of protection that an investor receives. And under any circumstance, it seems logical to presume that an investor (institutional or retail) who buys XRP is betting on Ripple for one reason or another.”

Stark believes the ruling sits on shaky ground, with an appeal and a reversal likely.

However, progress on Capitol Hill to address the regulatory void that continues to impact the US digital asset space could mute the outcome of an SEC appeal of the Court ruling.

While the outcome of an appeal would impact XRP, Ripple CEO Brad Garlinghouse expects an SEC appeal to take years, giving crypto advocates on Capitol Hill the time to push through legislation to deliver a much-needed crypto regulatory framework.

The Day Ahead

SEC v Ripple case-related chatter will remain the focal point. Investors will likely be seeking SEC comment on appeal chatter to provide direction.

However, beyond the SEC v Ripple case and the staking statistics, investors should continue to monitor ETF chatter, with Binance, Coinbase (COIN), and US lawmaker crypto chatter also focal points.

A bipartisan response to the call from Senator Cynthia Lummis for crypto legislation would provide price support.