ETH Bulls Target $2,000 on Staking Inflows and Accumulation Stats

Key Insights:

• On Wednesday, ETH extended the winning streak to three sessions, rising by 2.03% to end the day at $1,909.
• Sentiment toward the upcoming Shapella upgrade supported a return to $1,900.
• The technical indicators are bullish, signaling a return to $2,000.

Ethereum (ETH) rose by 2.03% on Wednesday. Following a 3.31% gain on Tuesday, ETH ended the day at $1,909. ETH wrapped up the day at $1,900 levels for the first time since August 2022.

A mixed start to the day saw ETH fall to an early low of $1,865. Steering clear of the First Major Support Level (S1) at $1,819, ETH rallied to a midday high of $1,944. ETH broke through the First Major Resistance Level (R1) at $1,908 to test the Second Major Resistance Level (R2) at $1,944 before easing back.

Shapella Upgrade Sentiment Gives ETH Bulls a Run at $2,000

ETH staking inflows rose for the second consecutive day on Wednesday, signaling bullish sentiment toward ETH and the Shapella upgrade.

According to CryptoQuant, staking inflows rose from 16,064 ETH on Tuesday to 22,048 on Wednesday. Inflows had fallen to their lowest since March 5 before moving back through the 10,000 level.

The upswing in staking inflows supported the continued rise in total value staked, a bullish indicator. Demand for unstaking ETH after the Shapella upgrade will likely be lower should the uptrend continue.

On Wednesday, Santiment shared an update on ETH accumulation, supporting the bullish sentiment. Santiment tweeted,

“Ethereum jumped back over $1,870 today for the first time since August 17, 2022. This near 8-month high comes as sharks have been accumulating steadily since last summer. Addresses holding 100-10k ETH have accumulated $4.24B in the past 9 months.”

The Day Ahead

Economic data from the US will influence the afternoon session, with the US initial jobless claims in focus. On Wednesday, ETH showed sensitivity to disappointing ADP employment change and ISM Non-Manufacturing PMI numbers.

Away from the US economic calendar, SEC v Ripple case updates would need consideration, with Court rulings in favor of Ripple likely to deliver a breakout session.

However, staking movements will continue to influence.

Ethereum (ETH) Price Action

At the time of writing, ETH was down 0.73% to $1,895. A mixed start to the day saw ETH rise to an early high of $1,911 before falling to a low of $1,892.

Technical Indicators

ETH needs to move through the $1,905 pivot to target the First Major Resistance Level (R1) at $1,947. A move through the Wednesday high of $1,944 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 $1,985 and resistance at $2,000. The Third Major Resistance Level (R3) sits at $2,064.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,868 in play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,850 and the Second Major Support Level (S2) at $1,827. The Third Major Support Level (S3) sits at $1,748.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,831. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the 50-day EMA ($1,831) would support a breakout from R1 ($1,947) to target R2 ($1,985) and $2,000. However, a fall through S1 ($1,868) would bring the 50-day EMA and S2 ($1,827) into view. A fall through the 50-day EMA would send a bearish signal.