On Tuesday, Ethereum (ETH) resumed the downtrend, falling 0.26% to close the day at $1,562. Testimony from Fed Chairman Powell, as well as a bearish NASDAQ Composite Index, left ETH in negative territory. Technical indicators remain bearish, with less than $1,500 in sight.
Ethereum (ETH) fell 0.26% on Tuesday. Reversing a 0.06% gain on Monday, ETH ended the day at $1,562. ETH failed to reach the $1,600 level for the fourth session in a row.
A mixed start to the day saw ETH rally to an early morning high of $1,584, before pulling back. Facing the first major resistance level (R1) at $1,581, ETH slid to a mid-afternoon low of $1,536. ETH briefly fell through the first major support level (S1) at $1,553, and the second major support level (S2) at $1,540, before ending the day at $1,562.
Fed Chairman Powell Sends ETH into the Red as Stake Flows Fall
It was another quiet session on Tuesday. There were no updates on the delayed Shanghai update to influence investor sentiment. Following the surge in staking inflows ahead of the Shapella update, ETH daily inflows have fallen to below normal levels this week.
The pushback is likely in response to the Shanghai update delay, as well as to increased regulatory and legislative scrutiny.
According to CryptoQuant, ETH staking inputs stood at 13,952 ETH on March 7. While up from 3,552 ETH on March 5, inflows are well below the current year high of 198,560 on February 25.
While betting inputs were bearish, Fed Chairman Powell and the NASDAQ Composite Index had more influence on Tuesday.
Unexpectedly aggressive testimony caught investors by surprise. Powell sent BTC below $22,000 and the NASDAQ Composite Index into negative territory.
On Tuesday, Fed Chairman Powell spoke of the need for higher rates to combat inflation, noting that economic data was better than expected. In response to Powell’s testimony, the NASDAQ Composite Index ended the day down 1.25%. The NASDAQ mini was up 4.25 points this morning.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.20% to $1,565. A bullish start to the day saw ETH rally from an initial low of $1,562 to a high of $1,571.
ETH needs to avoid the $1,561 pivot to target the first major resistance level (R1) at $1,585. A return to $1,580 would signal a bullish session. However, the Shanghai update news and crypto news wires should 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 $1,609. The third main resistance level sits at $1,657.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. Ethereum broke below the 50-day EMA, currently at $1,587. The 50-day EMA pulled back from the 200-day EMA, and the 100-day EMA turned down to the 200-day EMA, which led to bearish signals.
A move through R1 ($1,585) and the 50-day EMA ($1,587) would give bulls a run on the 200-day EMA ($1,596) and 100-day EMA ($1,602) and R2 ($1,609). A move through the 50-day EMA would send a bullish signal. However, if the 50-day EMA ($1,587) is not broken, the major support levels will still be in play.
By Audy Castaneda
