ETH Bulls to Target $1,900 on Crypto Market Activity and the Fed

Key Insights:

• On Tuesday, ETH gained 3.22% to end the session at $1,793.
• Crypto market-related news delivered a bullish session, offsetting bearish staking statistics.
• The technical indicators turned bullish, signaling a return to $1,850.

Ethereum (ETH) gained 3.22% on Tuesday. Following a 0.99% rise on Monday, ETH ended the day at $1,793. Significantly, ETH tested resistance at $1,800 for the first time since June 10.

After another range-bound morning, ETH fell to an early afternoon low of $1,714. Steering clear of the First Major Support Level (S1) at $1,707, ETH rose to a final-hour high of $1,797. ETH broke through the First Major Resistance Level (R1) at $1,759 and the Second Major Resistance Level (R2) at $1,781 to end the day at $1,793.

Deutsche Bank, EDX Markets, and Blackrock Deliver a Bullish Session

It was a quiet afternoon session, with US housing sector numbers having no impact on the crypto markets. However, news of Deutsche Bank (DB) applying for a crypto custody license and the launch of EDX Markets supported a bullish Tuesday session.

Fidelity, Citadel Securities, and Charles Schwab (SCHW) are among the big names backing EDX Markets that launched its digit asset arm on Tuesday. The platform supports the trading of BTC, ETH, LTC, and BCH.

The launch followed the news of Blackrock (BLK) filing the necessary documentation with the SEC to launch the iShares Bitcoin Trust on June 15, fueling bets of an influx of sticky institutional money.

Staking Statistics Send Bearish Signals

According to CryptoQuant, staking inflows declined from 68,192 ETH on Monday to 54,400 on Tuesday. The pullback left inflows below the 100,000 ETH threshold for an eighteenth session.

The total value staked climbed at a slower pace, with the fall in ETH staking inflows and a net staking deficit weighing.

The overnight withdrawal profile was bearish, with principal withdrawals at above-normal levels. However, withdrawal projections for the morning session were more bullish, with principal ETH withdrawals projected to return to normal withdrawal levels.

On Tuesday, the net ETH staking balance tumbled by 205.53% to a deficit of 16,290 ETH, equivalent to $28.11 million. Deposits totaled 70,800 ETH versus withdrawals of 87,090 ETH.

According to TokenUnlocks, total pending withdrawals stood at 34,430 ETH, equivalent to approximately $62.28 million. Notably, the staking APR stood at 6.00%, down 0.33% over 24 hours.

The Day Ahead

It is a busy Wednesday session. While there are no US economic indicators for investors to consider, Fed Chair Powell will deliver the first day of testimony on Capitol Hill. The US economy, inflation, and monetary policy are likely hot topics.

However, US lawmakers may seize the opportunity to question the Fed Chair over the crypto market, CBDCs, and the SEC charges against Coinbase (COIN) and Binance.

Staking statistics will also provide direction. A pickup in the staking APR and a return to a net staking surplus would send bullish signals. However, market sentiment must remain bullish to support a sharp pickup in staking inflows.

The launch of EDX Markets could prove bullish for ETH, with the Wall Street-backed platform only offering BTC, ETH, LTC, and BCH.

While the Fed and the staking statistics will move the dial, investors should monitor the crypto wires for SEC v Ripple, SEC v Binance, and SEC v Coinbase-related news.

Ethereum Price Action

This morning, ETH was up 0.85% to $1,808. A mixed start to the day saw ETH fall to an early low of $1,787 before rising to a high of $1,828. ETH tested the First Major Resistance Level (R1) at $1,822 before easing back.

ETH Technical Indicators

Looking at the EMAs and the 4-hourly candlestick chart (below), it was bullish signals. Ethereum sat above the 200-day EMA, currently at $1,792. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.

A hold above the 200-day EMA ($1,792) would support a breakout from R1 ($1,822) to target R2 ($1,851) and $1,900. However, a fall through the 200-day ($1,792) and 100-day ($1,761) EMAs would bring the 50-day EMA ($1,739) and S1 ($1,739) into view. An ETH slide through the 50-day EMA would send a bearish signal.

Resistance & Support Level

ETH needs to avoid the $1,768 pivot to retarget the First Major Resistance Level (R1) at $1,822 and the morning high of $1,828. A move through the morning high would signal an extended breakout session. However, ETH staking statistics and Fed Chair Powell must support a bullish session.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,851 and resistance at $1,900. The Third Major Resistance Level (R3) sits at $1,934.

A fall through the pivot would bring the First Major Support Level (S1) at $1,739 into play. However, barring a risk-off-fueled sell-off, ETH should avoid sub-$1,700 and the Second Major Support Level (S2) at $1,685.

The Third Major Support Level (S3) sits at $1,602.