ETH Bulls to Target $1,900 on PayPal USD Launch on Ethereum

Key Insights:

• ETH continued the slow retreat toward $1.800, falling 0.05% to end the day at $1,828.
• Staking statistics and regulatory uncertainty overshadowed the news of PayPal launching PayPal USD on the Ethereum blockchain.
• The shorter-term technical indicators remain bearish, signaling a fall to sub-$1,800.

Ethereum (ETH) slipped by 0.05% on Monday. Following a 0.38% loss on Sunday, ETH ended the day at $1,828. ETH fell short of $1,850 for the fourth consecutive session.

Ethereum Price Action

This morning, ETH was up 0.32% to $1,834. A bullish start to the day saw ETH rise from an early low of $1,825 to a high of $1,837.

Daily Chart

The Daily Chart showed ETH hovering above the $1,815 – $1,795 support band. However, ETH sat below the 50-day EMA ($1,862) while holding above the 200-day ($1,787), sending bearish near-term but bullish longer-term price signals. Notably, the 50-day EMA narrowed to the 200-day EMA, a bearish price signal.

Looking at the 14-Daily RSI, the 43.34 reading reflects bearish sentiment, supporting a fall through the $1,815 – $1,795 support band to target the 200-day EMA ($1,787). However, an ETH move through the 50-day EMA ($1,862) would support a breakout from the $1,865 – $1,895 resistance band to target $1,950.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at $1,850. ETH sits above the $1,815 – $1,795 support band. However, ETH remained below the 50-day ($1,840) and 200-day ($1,863) EMAs, sending bearish near and longer-term price signals.

An ETH move through the 50-day EMA would support a breakout from the 200-day EMA and the $1,865 – $1,895 support band to target $1,950. However, failure to move through the 50-day EMA would leave the $1,815 – $1,795 support band in play.

The 14-4H RSI reading of 50.24 sends moderately bullish price signals, with buying pressure outweighing selling pressure. Significantly, the RSI signals a breakout from the 50-day EMA to target the 200-day EMA ($1,863) and the $1,865 – $1,895 resistance band.

Staking Statistics and the SEC Overshadow the PayPal USD Launch

It was a busy Monday session, with news hitting the wires of PayPal (PYPL) launching PayPal USD (PYUSD), a dollar stablecoin fully backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents, redeemable 1:1 for the dollar. PYUSD is an ERC-20 token issued on the Ethereum blockchain.

According to the press release,

“PayPal USD will be available to consumers, merchants, and developers to seamlessly connect fiat and digital currencies.”

ETH failed to break out from resistance at $1,850 despite the news. ETH staking statistics and SEC-fueled uncertainty overshadowed the news.

Staking inflows decreased from 30,592 ETH on Saturday to 15,968 on Sunday. The fall to sub-20,000 was a bearish Monday price signal. A continued rise in pending ETH withdrawals and a fall in the staking APR were also bearish.

SEC plans to appeal the SEC v Ripple Court ruling, and the future of the spot crypto ETF market added to the bearish mood.

Staking Statistics Continued to Send Bearish Signals

According to CryptoQuant, staking inflows increased from 15,968 ETH on Sunday to 26,176 on Monday. Despite the increase, staking inflows remained below recent trends, a bearish price signal.

The overnight withdrawal profile was bullish, with principal withdrawals at normal levels. However, withdrawal projections for the morning session are bearish. Projections show withdrawals will spike before returning to normal withdrawal levels.

On Monday, the net staking balance stood at a 9,830 ETH surplus ($18.02 million), down 5.17% over 24 hours. Deposits totaled 16,860 versus withdrawals of 7,030 ETH.

According to TokenUnlocks, total pending withdrawals stood at 42,950 ETH, equivalent to approximately $78.93 million. Notably, the staking APR stood at 5.73%, unchanged over 24 hours. However, the downward trend in net staking balance and the upward trend in total pending withdrawals are bearish price signals.