ETH Withdrawal Profile and Staking Inflows Bring $2,200 into View

Key Insights:

• ETH ended a three-day winning streak on Saturday, falling by 0.43% to end the day at $2,093.
• While ETH staking remained elevated, ETH principal withdrawals spiked on Saturday, supporting the modest pullback.
• However, the technical indicators remain bullish, signaling a run at $2,300.

Ethereum (ETH) fell by 0.43% on Saturday, partially reversing a 4.37% gain from Friday, ETH ended the day at $2,093. Despite the bearish session, ETH avoided sub-$2,000 for the second consecutive day.

A mixed start to the day saw ETH slip to an early low of $2,074. Steering clear of the First Major Support Level (S1) at $2,032, ETH rose to a late morning high of $2,113. However, falling short of the First Major Resistance Level (R1) at $2,152, ETH fell back to sub-$2,100 levels and into negative territory.

ETH Staking Statistics End a Three-Day Winning Streak

ETH staking statistics remained a focal point on Saturday. Staking inflows, total value staked, and unlocking historical numbers and projections influenced investor sentiment.

Staking inflows fell for the first time in six sessions on Saturday. According to CryptoQuant, staking inflows fell from 110,432 ETH on Friday to 38,840 on Saturday. However, inflows remained elevated, despite the pullback, limiting the impact on ETH.

Total value staked figures continued to deliver bullish signals, with the upward trend continuing despite an ETH price pullback to sub-$2,100.

While inflows and total value staked sent bullish signals, withdrawals weighed on investor sentiment on Saturday.

A spike in principal withdrawals weighed on buyer appetite. The surge in principal withdrawals delivered a bearish signal. On Friday, TokenUnlocks projected a shift in the staked ETH withdrawal profile.

However, the principal-reward withdrawal dynamic returned to normal this morning, with rewards making up the lion’s share of withdrawals. Projections are also bullish, with TokenUnlocks projecting subdued withdrawal demand.

According to TokenUnlocks, total pending withdrawals stood at 1.07 million ETH, equivalent to approximately $2.24 billion, primarily comprised of reward withdrawals.

Considering the withdrawal projections, investors should continue to monitor staking inflows and total value-staked figures. A continued upward trend in total value staked would support the run at $2,300. However, withdrawal profiles will need to remain consistent. Another spike in principal withdrawals would be a bearish signal.

The Day Ahead

Staking statistics will need monitoring today. Depressed principal withdrawals would be a bullish price signal. Staking inflows and total value staked figures would also need to support a bullish session.

However, updates from the ongoing SEC v Ripple case and Binance and Coinbase (COIN)-related news will also influence.

Ethereum Price Action

At the time of writing, ETH was down 0.19% to $2,088. A mixed start to the day saw ETH rise to an early high of $2,097 before falling to a low of $2,074. ETH tested the First Major Support Level (S1) at $2,074 early on.

ETH Technical Indicators

ETH needs to move through the $2,093 pivot to target the First Major Resistance Level (R1) at $2,113. A return to $2,100 would signal a breakout session. However, the crypto news wires and staking statistics need to support a breakout.

In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $2,132 and resistance at $2,150. The Third Major Resistance Level (R3) sits at $2,171.

Failure to move through the pivot would leave the First Major Support Level (S1) at $2,074 in play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$2,050. The Second Major Support Level (S2) at $2,054 should limit the downside. The Third Major Support Level (S3) sits at $2,015.

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 $1,981. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($1,981) would support a breakout from R1 ($2,113) to give the bulls a run at R2 ($2,132) and $2,150. However, a fall through S1 ($2,074) would bring S2 ($2,054) into view. A fall through S3 ($2,015) and the 50-day EMA would signal a bullish trend reversal.