ETH Bulls Remain in Control with $2,000 in View on ETF News

Key Insights:

• On Friday, ETH returned to winning ways, gaining 1.18% to end the day at $1,894.
• Staking statistics had a limited impact, with ETF-linked news providing support.
• The technical indicators are bullish, signaling a return to $2,000.

Ethereum (ETH) rose by 1.18% on Friday. Reversing a 0.95% loss from Thursday, ETH ended the day at $1,894. Significantly, ETH revisited the $1,900 handle for the third consecutive session.

After a range-bound morning, ETH fell to an early afternoon low of $1,862. Steering clear of the First Major Support Level (S1) at $1,848, ETH rose to a late afternoon high of $1,937. ETH broke through the First Major Resistance Level (R1) at $1,915 before ending the session at $1,894.

The SEC Delivers an Unexpected Crypto Market Breakout

Ethereum-related news had a limited impact on Friday. Investors brushed aside news of Gemini launching ETH staking in the UK.

On Friday, Gemini announced the launch of Gemini Staking Pro, saying,

“We are excited to announce the expansion of Gemini Staking Pro to the United Kingdom. UK users with 32 ether (ETH) or more can now seamlessly launch dedicated validators on Ethereum, facilitated by Gemini.”

Gemini Staking Pro is available in the US (ex-New York), Singapore, Hong Kong, Australia, and Brazil, among other countries.

However, news of the SEC approving the Volatility Shares Trust 2x Bitcoin Strategy ETF fueled a mid-afternoon breakout. The 2x Bitcoin Strategy ETF seeks two times the excess return of the S&P CME Bitcoin Futures daily Roll Index daily and will launch on June 26.

Staking Statistics Signal Bullish Sentiment

According to CryptoQuant, staking inflows slid from 151,808 ETH on Thursday to 55,488 on Friday. Significantly, staking inflows fell back through the 100,000 ETH threshold.

The total value staked climbed at a less marked pace, with the fall in staking inflows and net staking surplus a drag.

The overnight withdrawal profile was bullish, with principal withdrawals falling to more normal levels. However, withdrawal projections for the morning session were more bearish. Projections show principal withdrawals will spike.

On Friday, the net staking surplus balance stood at 61.490 ETH, equivalent to $116.69 million. Deposits totaled 67,370 ETH versus withdrawals of 5,880 ETH.

According to TokenUnlocks, total pending withdrawals stood at 55,360 ETH, equivalent to approximately $104.58 million. Notably, the staking APR stood at 5.90%, down 1.34% over 24 hours. The continued decline in staking APR is a drag on staking inflows.

The Day Ahead

It is a quiet Saturday session, with no US economic indicators to move the dial. However, investors should continue to monitor the crypto news wires and the staking statistics. A rebound in staking APR would support a rise in staking inflows and an ETH run at $2,000.

While the staking statistics will draw interest, investors should track SEC v Ripple, SEC v Binance, and SEC v Coinbase (COIN)-related news.

Ethereum Price Action

This morning, ETH was down 0.06% to $1,893. A bearish start to the day saw ETH fall from an early high of $1,894 to a low of $1,879 before steadying.

ETH Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. Ethereum sat above the 50-day EMA, currently at $1,814. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($1,814) would support a breakout from R1 ($1,933) to target R2 ($1,973) and $2,000. However, a fall through S1 ($1,858) would bring S2 ($1,823) and the 50-day EMA ($1,814) into view. A slide through the 50-day EMA would send a bearish signal.

Resistance & Support Level