On Wednesday, Ethereum (ETH) fell 3.76% to end the day at $1,739. ETH staking flows failed to support a breakout session, with Fed Chairman Powell and the SEC weighing on investor sentiment. However, technical indicators remained bullish, leaving $2,000 in sight.
Ethereum (ETH) fell 3.76% on Wednesday. Reversing a 3.91% loss on Tuesday, ETH ended the day at $1,739. ETH avoided sub-$1,700 for the fifth session in a row despite the mid-week sell-off.
After a busy morning, ETH rallied to a mid-afternoon high of $1,824, before pulling back. Failing to reach the first major resistance level (R1) at $1,857, ETH fell to a post-Fed low of $1,715. ETH fell through the first major support level (S1) at $1,741, to close the day at $1,739.
Fed Chairman Powell and NASDAQ Composite Index Send ETH South
The Federal Reserve raised interest rates by 25-basis points on Wednesday. While in line with market expectations, FOMC and Fed Chairman Powell’s projections weighed on riskier assets.
The FOMC projections showed an upward revision of the median federal funds rate to 4.3% for 2024, while the median for 2023 at 5.1% was unchanged.
The NASDAQ Composite Index fell 1.60% on Wednesday, and the Dow and S&P 500 posted losses of 1.63% and 1.65%, respectively. This morning, the NASDAQ mini was up 22.25 points.
ETH staking entries rallied on Wednesday. According to CryptoQuant, staking entries increased from 9,248 ETH on Tuesday, to 32,640 ETH on Wednesday, the highest ETH staking entries since March 9 (35,552 ETH).
The bounce continued the bullish trend in investment inflows ahead of Shapella’s April improvement. Significantly, the uptrend suggests a bullish response to the Shapella update, with the total value of ETH staked rising as well.
A downward trend would suggest an increase in decommissioning requests, after the Shapella upgrade is complete.
This afternoon, US economic indicators will test buyers’ appetites. Initial jobless claims will be in the spotlight, with levels below 200k supporting a more hawkish Fed.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.01% to $1,739. A range-bound start to the day saw ETH rally to an early high of $1,750 before pulling back.
ETH needs to move through the $1,759 pivot to target the first major resistance level (R1) at $1,804, and Wednesday’s high of $1,824. A return to $1,800 would signal a breakout session. However, US economic indicators and crypto news leads should be market friendly to support a breakout.
In the event of a prolonged rally, the bulls would likely test the second major resistance level (R2) at $1868, and resistance at $1900. The third major resistance level (R3) sits at $1,977.
Ethereum sat below the 50-day EMA, currently at $1,739. The 50-day EMA turned down to the 100-day EMA, while the 100-day EMA broke out from the 200-day EMA, giving mixed signals.
A move through the 50-day EMA ($1,739) would support a break of R1 ($1,804) to the R2 ($1,868) target and $1,900. However, a failure to move through the 50-day EMA ($1,804) $1,739), the bears will race on S1 ($1,695) and the 100-day EMA ($1,691). A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
