ETH Faces Below $1,850 As Investors Eye The Fed

Sub Levels –

Key Insights:

  • On Tuesday, ETH pushed the entire market into positive territory, rising 1.61% to end the day at $1,890.
  • ETF-related news provided much-needed support for ETH and the cryptocurrency market.
  • Technical indicators remain bullish and point to a return to $2,000.

Ethereum (ETH) rose 1.61% on Tuesday. ETH closed the day at $1,890 after partially recovering its 2.05% loss from Monday. Importantly, ETH has seen him avoid below $1,800 for six consecutive sessions.

The day got off to a mixed start, with ETH falling to an opening hour low of $1,856. After escaping the first major support level (S1) at $1,830, ETH climbed to the late afternoon high of $1,913. ETH broke the first major resistance level (R1) at $1,899 before falling to end the day at $1,890.

ETF-related news and US economic data led to a bullish session

It was a busy Tuesday session. ETF-related news continued to fuel the latest broad crypto rally.

On Tuesday, news broke that Fidelity is planning to launch a Bitcoin spot ETF. The latest in a string of mainstream players targeting the cryptocurrency market through ETF products has been aggressive in cryptocurrencies.

Fidelity joins BlackRock (BLK) as it aims to provide investors with crypto exposure. Fidelity isn’t the only company following in BlackRock’s footsteps. Invesco (IVZ) is he one of the leading companies to reapply for spot BTC ETF applications.

Also bullish was the news that Hong Kong and Shanghai Banking Corporation (HSBC) has allowed its clients to trade BTC and ETH exchange-traded funds (ETFs) on Monday.

US economic data also confirms the bullish trading. Better than expected consumer confidence and core durable goods orders eased near-term fears of a Fed recession.

Staking Stats Turn Bullish to Confirm Tuesday’s Gains

Staking inflow increased from 63,456 ETH on Monday to 104,288 ETH on Tuesday, according to CryptoQuant. Importantly, the inflow to ETH staking broke the 100,000 ETH threshold for the first time in five sessions.

ETH staking inflow 280623

However, staking annual yields continue to fall, suggesting that staking inflows may recede.

The overnight withdrawal profile was relatively bearish, with principal withdrawals above normal levels. However, the pullback forecast in the morning trade was bullish. According to forecasts, ETH withdrawals are expected to be below normal levels.

On Tuesday, ETH staking net balance was in deficit of 22,430 ETH (up 13.36% in 24 hours), equivalent to a deficit of $42.04 million. The total deposit was zero, but the withdrawal was 22,430 ETH.

According to TokenUnlocks, the total pending withdrawal amount is 21,450 ETH, which equates to approximately $39.97 million. Notably, the staking APR was 5.72%, down 1.38% in 24 hours. The downward trend in staking APR is still a drag on staking inflows, negatively affecting ETH price.

Withdrawal profile 280623

the day ahead

It’s a quiet Wednesday session. There are no US economic data to influence, leaving it up to Fed Chairman Jerome Powell to steer policy. Markets are betting on hawkish rhetoric and the Fed chair may refrain from deviating from the scenario ahead of the release of the core PCE price index on Friday.

Beyond the economic calendar, crypto ETF chatter and the SEC v. Ripple court ruling will get a lot of attention.

However, investors should also track ETH staking stats and news updates related to SEC vs Binance and SEC vs Coinbase (COIN).

ethereum price volatility

ETH fell 1.36% to $1,864 this morning. The day started mixedly, with ETH rising to early highs of $1,891 before falling to lows of $1,856.

ETHUSD 280623 Daily Chart

ETH Technical Indicators

Looking at the EMA and the 4-hour candlestick chart (below), it was a bullish signal. Ethereum has broken above the 50-day EMA and is currently at $1,857. The 50-day EMA has moved further away from the 200-day EMA and the 100-day EMA has widened from the 200-day EMA, sending a bullish signal.

A hold above S1 ($1,860) and the 50-day EMA ($1,857) supports a breakout from R1 ($1,917) to targets R2 ($1,943) and $1,950. However, after crossing the S1 ($1,860) and the 50-day EMA ($1,857), the 100-day EMA ($1,831) and S2 ($1,829) will come into view. A break below the 50-day EMA will send a bearish signal.

ETHUSD 280623 4-hour chart

Resistance and support levels

R1 – $ 1,917 S1 – $ 1,860
R2 – $ 1,943 S2 – $ 1,829
R3 – $ 2,000 S3 – $ 1,772

This article was originally posted on FX Empire

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

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