On Friday, Ethereum (ETH) extended its winning streak to four sessions, rising 1.56%, to end the day at $1,822. US economic indicators and investment inflows supported the bullish end to the first quarter. Technical indicators remain bullish, with $2,000 in sight.
Ethereum (ETH) was up 1.56% on Friday. Following a 0.06% gain on Thursday, ETH ended March up 13.49% at $1,822. Following the broader crypto market, ETH jumped 52.4% in Q1. Notably, the quarterly profit was the second in five quarters.
A mixed start to the day saw ETH fall to a low of $1,780 by late morning. Moving away from the first major support level (S1) at $1,761, ETH rallied to an early afternoon high of $1,847. ETH broke above the first major resistance level (R1) at $1,828, before pulling back to end the day at $1,822.
Pre-Shapella ETH Staking Spikes to Offer a Bullish Session
ETH staking inflows increased for the fourth day in a row, a bullish sign. According to CryptoQuant, staking flows increased from 28,320 ETH on Thursday, to 55,104 ETH on Friday. The rally came despite intensifying regulatory scrutiny, which threatens investor access to crypto gambling in the US. The total value stake continued the uptrend this morning, providing another bullish signal.
Investors should continue to monitor regulatory activity which will continue to be the focal point in the near term. However, updates to the SEC v. Ripple case would likely silence anti-crypto rhetoric and news about the regulatory activity.
With no external market forces for investors to consider, ETH staking streams will continue to attract interest as the Shapella update date approaches.
Softer-than-expected US inflation numbers on Friday left riskier assets with support in the afternoon. The US Core PCE Price Index rose 4.6% in February, year-over-year, up from 4.7% in January. US indices responded to the statistics, supporting the bullish afternoon session. The NASDAQ Composite Index rose 1.74% on Friday.
Ethereum (ETH) Price Action – Technical Indicators
ETH was up 0.37 at $1,829. A mixed start to the day saw ETH drop to an initial low of $1,820, before rising to a high of $1,843.
ETH needs to avoid the $1,816 pivot to target the first major resistance level (R1) at $1,853. A move through Friday’s high of $1,847 would signal a breakout session. However, crypto news leads must be ETH-friendly to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1883, and resistance at $1900. The third major resistance level (R3) sits at $1,950.
Ethereum broke above the 50-day EMA, currently at $1,780. The 50-day EMA has turned away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA providing bullish signals.
A hold above S1 ($1786) and the 50-day EMA ($1780) would support a break out of R1 ($1853) to the R2 ($1883) target and $1900. However, a drop-through S1 ($1786) and the 50-day EMA ($1780) would give bears a run at the 100-day EMA ($1750) and S2 ($1749). A drop through the 50-day EMA would send a downtrend signal.
By Audy Castaneda
