On Thursday, Ethereum (ETH) rose 4.54% to end the day at $1,818. The silence of the Shapella update left ETH in the hands of the US government and the NASDAQ Composite Index. Technical indicators remained bullish, leaving $2,000 in sight.
Ethereum (ETH) was up 4.54% on Thursday. Reversing a 3.76% loss on Wednesday, ETH ended the day at $1,818. ETH held control of $1,800 for the second time in three sessions.
A mixed start to the day saw ETH fall to an early low of $1,734. Breaking away from the first major support level (S1) at $1,695, ETH rallied to a mid-afternoon high of $1,862. ETH broke the first major resistance level (R1) at $1,804 to test resistance at the second major resistance level (R2) at $1,868 before pulling back to end the day at $1,818.
Former Fed Chair Yellen Counters Sell-Off Driven by Fed Chairman Powell
Risk aversion hit US markets on Thursday as fears of a banking crisis resurfaced after the Fed raised rates by 25-basis points on Wednesday.
Fed Chairman Powell hinted at a Fed pause on rate hikes to assess the impact of Fed rate hikes on the US banking sector and economy. interest rates came despite the collapse of Silicon Valley Bank and Signature Bank (SBNY), sending bank shares tumbling in the early afternoon.
US Treasury Secretary Janet Yellen eased investor jitters, assuring them that bank deposits were safe and lawmakers have the tools to deal with a banking crisis.
The NASDAQ Composite Index rose 1.01% on Thursday, and the Dow and S&P 500 posted gains of 0.23% and 0.30%, respectively. This morning, the NASDAQ mini is down 23.5 points.
ETH staking entries declined on Thursday but avoided sub-10,000. According to CryptoQuant, staking flows decreased from 32,640 ETH on Wednesday to 15,232 ETH on Thursday. Despite the decline, staking flows remained elevated, supporting the current uptrend in the run-up to the Shapella hard fork.
The continued 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.
Ethereum (ETH) Price Action – Technical Indicators
ETH rose 0.08% to $1,819. A range-bound start to the day saw ETH rally to an early high of $1,822, before pulling back.
ETH needs to avoid the $1,805 pivot to target the first major resistance level (R1) at $1,875. A move through Thursday’s high of $1,862 would signal a breakout session. However, US economic indicators, as well as crypto news leads, 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 $1,933, and resistance at $2,000. The third major resistance level (R3) sits at $2,061.
Ethereum has broken above the 50-day EMA, currently at $1,753. The 50-day EMA has turned away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA, providing bullish signals.
A hold above the 50-day EMA ($1,753) would support a break of R1 ($1,875) to the target of R2 ($1,933) and $2,000. However, a drop through the 50-day EMA ($1,753) and S1 ($1,747) would give the bears a run to the 100-day EMA ($1,704). A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda