- On Friday, ETH gained 2.42% to end the day at $1,907.
- Elevated staking inflows and a pickup in demand for riskier assets provided support.
- However, the technical indicators remain bullish, signaling a run at $2,000.
Ethereum (ETH) rose by 2.42% on Friday. Reversing a 0.64% loss from Thursday, ETH ended the day at $1,907. Despite the bullish session, ETH revisited sub-$1,850 for the third consecutive session.
Tracking the broader crypto market, ETH fell to a first-hour low of $1,848. Steering clear of the First Major Support Level (S1) at $1,838, ETH rose to an early evening high of $1,911. ETH broke through the First Major Resistance Level (R1) at $1,887 to end the day at $1,907.
Staking Statistics and US Economic Indicators Delivered Support
According to CryptoQuant, staking inflows fell from an ATH of 404,704 ETH on Thursday to 220,512 on Friday. While inflows declined, levels remained elevated compared to previous highs.
The total value staked continued to surge, supported by the latest ETH staking inflows and the net staking balance.
The overnight withdrawal profile was bearish, with principal withdrawals rising above normal levels. However, withdrawal projections for the morning session turned bullish, with principal ETH withdrawals expected to return to below-normal levels.
On Wednesday, the net ETH staking balance surged by 422% to a surplus of 400,290 ETH, equivalent to $746.21 million. Deposits totaled 411,510 ETH versus withdrawals of 11,220 ETH.
According to TokenUnlocks, total pending withdrawals stood at 72,630 ETH, equivalent to approximately $138.50 million. Notably, the staking APR stood at 8.92%, up 0.22% over 24 hours.
US Economic Indicators Supported Bets on a Fed Pause in June
It was a busy day on the US economic calendar. The US Jobs Report was in focus.
Average hourly earnings fell short of expectations, rising by 0.3% versus a forecasted 0.4% in May. Softer wage growth came despite another sharp increase in nonfarm payrolls, which surged by 339k versus 294k in April. Economists forecast a 180k rise. The unemployment rate unexpectedly rose from 3.4% to 3.7% despite the surge in hiring.
The May Jobs Report supported bets on a Fed pause in June.
According to the CME FedWatch Tool, the probability of a June interest rate hike rose from 20.4% to 25.3%. One week earlier, the chance of a 25-basis point hike stood at 64.2%.
Market reaction to the news of the US Senate passing the Debt Limit Suspension Bill was also bullish.
The Day Ahead
It is a quiet day for ETH. There are no US economic indicators for investors to consider. The lack of economic indicators leaves ETH in the hands of staking and withdrawal statistics and the crypto news wires.
However, following the release of the Digital Asset Market Structure Proposal, investors should track SEC and CFTC chatter.
Ethereum Price Action
This morning, ETH was down 0.27% to $1,902. A mixed start to the day saw ETH rise to an early high of $1,910 before falling to a low of $1,898.
ETH Technical Indicators
Resistance & Support Levels
|R1 – $||1,929||S1 – $||1,866|
|R2 – $||1,952||S2 – $||1,826|
|R3 – $||2,015||S3 – $||1,763|
ETH needs to avoid the $1,889 pivot to target the First Major Resistance Level (R1) at $1,929. A move through the Friday high of $1,911 would signal a breakout session. However, ETH staking statistics and the crypto news wires must support a bullish session.
In the event of an extended rally, the bulls would likely test the Second Major Resistance Level (R2) at $1,952 and resistance at $2,000. The Third Major Resistance Level (R3) sits at $2,015.
A fall through the pivot would bring the First Major Support Level (S1) at $1,866 into play. However, barring a risk-off-fueled sell-off, ETH should avoid sub-$1,800. The Second Major Support Level (S2) at $1,826 should limit the downside.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. Ethereum sat above the 50-day EMA, currently at $1,869. The 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above the 50-day ($1,869) would support a breakout from R1 ($1,929) to target R2 ($1,952) and $2,000. However, a fall through the 50-day ($1,869) and S1 ($1,866) would bring the 100-day ($1,855) and 200-day ($1,852) EMAs and S2 ($1,826) into view.
A fall through the 50-day EMA would send a bearish signal.
This article was originally posted on FX Empire
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