Monday was a bearish session for Bitcoin (BTC) and Ethereum (ETH), although the losses were modest. ETH and BTC saw further losses this morning.
After a range-bound morning, ETH rose to a mid-afternoon high of $1,665. Facing the first major resistance level (R1) at $1,666, ETH fell to a low of $1,608. Moving away from the first major support level (S1) at $1,602, however, ETH partially rallied to end the session at $1,633.
After a hectic Monday morning, BTC surged to a mid-afternoon high of $23,891. BTC broke above the first major resistance level (R1) at $23,795, before pulling back. The reversal caused BTC to slide to a late low of $23,131. BTC briefly fell through the first major support level (S1) at $23,205, before ending the day at $23,502.
ETH Staking Inflows Remained High Before Shapella Update
Following the news that Tron (TRX) founder Justin Sun staked 150,100 ETH on Lido (LDO) on Saturday, ETH inflows remained elevated on Monday.
The rise in ETH staking inflows signaled investor support for today’s Sepolia upgrade and March’s Goerli upgrade. The Shapella update was due to occur at 04:04:47 UTC on February 28, after which validators can withdraw their ETH staked on the Beacon Chain.
However, the market paid little interest to the latest ETH staking input figures as investors were concerned about the Federal Reserve and regulatory risk.
Ethereum (ETH) Price Action – Technical Indicators
ETH needs to avoid a drop through the $1,630 pivot to target the first major resistance level (R1) at $1,663 and Monday’s high of $1,665. A return to $1,650 would signal a breakout session. However, the Shanghai update news and crypto news wires should support ETH to support a breakout.
A drop through the pivot would bring the first major support level (S1) into play at $1,606. However, barring another crypto market sell-off, ETH should avoid less than $1,550. The second major support level (S2) at $1,578 should limit the damage. The third major support level (S3) sits at $1,521.
A move through the 50-day EMA ($1,633) would support a break of R1 ($1,663) to give the bulls a run into R2 ($1,692) and $1,700. However, a drop through the 100-day EMA (1630) would bring S1 ($1606) and the 200-day EMA ($1600) into view. A move through the 50-day EMA would send a bullish signal.
Bitcoin (BTC) Price Action – Technical Indicators
BTC needs to move through the $23,508 pivot to target the first major resistance level (R1) at $23,885 and Monday’s high of $23,891. A return to $23,750 would signal a breakout session. Crypto news wires and Fed talk should be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $24,268. The third major resistance level (R3) sits at $25,028.
A move through the 100-day ($23,520) and 50-day ($23,618) EMAs would support a break of R1 ($23,885) to the R2 ($24,268) target. However, a drop-through S1 ($23,125) would give the bears a run at the 200-day EMA ($22,918) and S2 ($22,748). A move through the 50-day EMA ($23,618) would send a bullish signal.
By Audy Castaneda
