ETH to Target $1,950 on Bullish Staking Statistics and Regulatory News

Key Insights:

• ETH ended a six-day losing streak on Thursday, gaining 0.16% to end the day at $1,892.
• Staking statistics delivered a trend-bucking session, with staking APRs supporting a surge in staking inflows.
• However, the shorter-term technical indicators remain bearish, signaling a fall to sub-$1,850.

Ethereum (ETH) gained 0.16% on Thursday. Partially reversing a 0.47% loss from Wednesday, ETH ended the day at $1,892. While ETH ended a six-day losing streak, ETH wrapped up the day at sub-$1,900 for the third consecutive session.

Ethereum Price Action

This morning, ETH was up 0.35% to $1,899. A range-bound start to the day saw ETH fall to an early low of $1,888 before rising to a high of $1,899.

Daily Chart

The Daily Chart showed ETH/USD sitting at the $1,895 – $1,865 support band, with resistance at $1,900 capping early gains.

However, ETH/USD currently sits above the 50-day ($1,874) and 200-day ($1,774) 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 51.26 reading signaled a bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a breakout from $1,900 to target $1,950 and the $2,075 – $2,105 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at $1,900. While ETH/USD moved through the upper level of the $1,895 – $1,865 support band, ETH remained below the 50-day EMA ($1,909). However, ETH holds above 200-day EMA ($1,885), sending bearish near-term but bullish longer-term price signals.

Significantly, the 50-day EMA narrowed to the 200-day EMA, signaling a fall through the upper level of the $1,895 – $1,865 support band and the 200-day EMA ($1.885) to bring sub-$1,850 into view.

However, a move through the 50-day EMA ($1,909) would bring $1,950 and the $2,075 – $2,105 resistance band into play.

The 14-4H RSI reading of 46.74 sends bearish ETH price signals, with selling pressure outweighing buying pressure. Significantly, the bearish RSI supports a fall through the upper level of the $1,895 – $1,865 support band and the 200-day EMA ($1,885) to bring sub-$1,850 into view.

Staking Statistics and US Lawmaker Chatter Delivered Support

It was another busy session on Thursday, with activity on Capitol Hill drawing interest. The news of a second digital asset bill raised the hope of regulatory clarity in the US.

On Thursday, the House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Chairman Dusty Johnson, Financial Services Subcommittee on Digital Assets Chairman French Hill, and Agriculture Committee Chairman Glenn “GT” Thompson introduced legislation to provide the digital asset space clarity and consistency.

The Financial Innovation and Technology (FIT) for the 21st Century Act would provide a much-needed structure for the Commodity Futures Trading Commission (CFTC) and the SEC.

Last week, Senator Cynthia Lummis touted the Lummis-Gillibrand Responsible Financial Innovation Act, demonstrating the desire among the Republican Party to support innovation in a more structured regulatory environment.

Historically, the threat of US regulations was bearish. However, investors will likely embrace a regulatory landscape that reins in the SEC regulation by enforcement mantra.

Staking statistics from Wednesday were also bullish, supporting the modest but trend-bucking gains.

Staking Statistics Remain Bullish on Thursday

According to CryptoQuant, staking inflows fell from 125,696 ETH on Wednesday to 85,504 on Thursday. While staking inflows fell below the 100,000 threshold on Thursday, staking inflows remained elevated compared to recent trends.

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

On Thursday, the net staking balance stood at a 122,650 ETH surplus ($233.76 million), up 311% over 24 hours. Deposits totaled 126,690 versus withdrawals of 4,030 ETH.

According to TokenUnlocks, total pending withdrawals stood at 38,770 ETH, equivalent to approximately $73.48 million. Notably, the staking APR stood at 5.76%, unchanged over 24 hours. The recent rise in the ETH staking APR and higher staking inflows are ETH price positive.