ETH Under Pressure with SEC and ETF Uncertainty a Drag on Staking Inflows

 Key Insights:

• ETH rejoined the broader market in the red on Sunday, falling 0.49% to end the day at $1,840.
• Staking statistics and SEC activity weighed on ETH, leaving ETH at sub-$1,850.
• The shorter-term technical indicators remained bearish, signaling a return to sub-$1,800.

Ethereum (ETH) fell by 0.49% on Sunday. Reversing a 0.05% gain from Saturday, ETH ended the week up 0.60% to $1,840.

Ethereum Price Action

This morning, ETH was flat at $1,840. A range-bound start to the day saw ETH fall to an early low of $1,838 before steadying.

Daily Chart

The Daily Chart showed ETH hovering below the $1,865 – $1,895 resistance band. ETH also sat below the 50-day EMA ($1,859) while holding above the 200-day ($1,791), 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 44.69 reading reflects bearish sentiment, supporting a fall through the $1,815 – $1,795 support band to target the 200-day EMA ($1,791). However, an ETH move through the 50-day EMA ($1,859) 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 below the $1,865 – $1,895 resistance band and the 50-day ($1,847) and 200-day ($1,859) EMAs, sending bearish near and longer-term price signals.

This morning the 50-day EMA eased back from the 200-day EMA, a bearish price signal.

An ETH move through the EMAs would support a breakout from the $1,865 – $1,895 resistance band to target $1,950. However, failure to move through the 50-day EMA ($1,847) would bring the $1,815 – $1,795 support band into play.

The 14-4H RSI reading of 43.03 reflects bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a fall to the $1,815 – $1,795 support band.

Staking Statistics, ETF Uncertainty, and the SEC Leave ETH at Sub-$1,850

Staking statistics from Saturday turned bearish, supporting another session at sub-$1,850. On Saturday, staking inflows tumbled from 104,192 ETH on Friday to 29,568, with pending withdrawals of 46,640 ETH also bearish.

ETF chatter also left ETH flat-footed, with former SEC Official John Reed Stark holding the view the SEC will decline the current batch of spot BTC ETF applications. Investors expect spot ETH ETF applications to follow the approval of one, some, or all of the spot BTC ETFs.

The SEC motion to file an interlocutory appeal to the SEC v Ripple Court ruling remained another headwind. Investors await a Ripple legal response to the SEC motion, which will draw the interest of other cryptos thrown into the SEC Securities Basket, including ETH.

Staking Statistics Send Bearish Signals Amidst SEC and ETF Uncertainty

According to CryptoQuant, staking inflows fell from 29,568 ETH on Saturday to 23,424 on Sunday. However, sub-30,000 aligns with weekend trends, which should limit the impact.

The overnight withdrawal profile was bearish, with principal withdrawals rising to above-normal levels before easing back. Notably, withdrawal projections for the morning session turned bullish. Projections show withdrawals will remain at normal withdrawal levels.

On Sunday, the net staking balance stood at a 23,080 ETH surplus ($42.69 million), down 76% over 24 hours. Deposits totaled 30,000 versus withdrawals of 6,920 ETH.

According to TokenUnlocks, total pending withdrawals stood at 46,440 ETH, equivalent to approximately $85.55 million. Notably, the staking APR stood at 4.93%, down 0.40% over 24 hours. The downward trend in staking APR, the sharp decrease in the net staking balance, and elevated pending withdrawals are bearish price signals.