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Key Insights:
- ETH jumped by 4.95% on Thursday to end the session at $2,014.
- Staking statistics and US economic indicators delivered the breakout session.
- The technical indicators are bullish, signaling a run at $2,300.
Ethereum (ETH) rallied by 4.95% on Thursday. Following a 1.43% gain on Wednesday, ETH ended the day at $2,014. ETH held onto the $2,000 handle for the first time since May 2022.
A bearish start to the day saw ETH fall to an early morning low of $1,901. Steering clear of the First Major Support Level (S1) at $1,872, ETH surged to an early evening high of $2,025. ETH broke through the First Major Resistance Level (R1) at $1,950 and the Second Major Resistance Level (R2) at $1,981 to wrap up the day at $2,014.
Post-Shapella Upgrade Staking Statistics Deliver Support
After the successful Shapella Upgrade on Wednesday, ETH staking-related statistics continued to deliver price support.
One key feature of the Shapella Upgrade was to unlock staked ETH on the Beacon Chain. Uncertainty over demand for unstaking left ETH short of the $2,000 handle. However, post-Shapella upgrade staking statistics have been bullish, supporting the return to $2,000.
According to CryptoQuant, staking inflows surged from 16,736 ETH on Wednesday to 95,584 on Thursday. Significantly, staking inflows rose for the fifth consecutive day and saw the largest ETH staking inflows since late February.
Total value staked also surged, another bullish price indicator.
According to TokenUnlocks, less than 5% of ETH withdrawals were original stakes, with more than 95% of ETH withdrawals stemming from staking rewards.
The latest stats from TokenUnblocks and CryptoQuant are bullish ETH price signals.
While staking statistics were the focal point, US economic indicators added to the bullish mood.
The US producer price index fell by 0.5% in March versus a forecasted 0.1% increase. Also bullish was a larger-than-expected rise in US initial jobless claims. Claims increased from 228k to 239k versus a forecasted 232k.
Considering the US CPI Report, the numbers supported investor expectations of the Fed nearing its peak in the monetary policy tightening cycle.
The NASDAQ Composite Index responded to the stats, rallying 1.99%, with the S&P 500 and Dow seeing gains of 1.33% and 1.14%, respectively.
The Day Ahead
Post-Shapella Upgrade ETH staking statistics will remain the focal point. We expect the upward trend in staking to support a move toward $2,500.
However, updates from the ongoing SEC v Ripple case and Binance and Coinbase (COIN)-related news will also influence.
This afternoon, US economic indicators will need consideration. US retail sales, industrial production, and consumer sentiment figures will be in focus. Weaker-than-forecast stats would be bullish. However, dire numbers could trigger recessionary jitters.
After the success of the Shapella Upgrade, investors should monitor the crypto news wires for regulatory activity. In Q1, the SEC targeted staking services and labeled ETH a security.
Ethereum Price Action
At the time of writing, ETH was up 5.17% to $2,118. A bullish start to the day saw ETH surge from an early low of $2,011 to a high of $2,131. ETH broke through the First Major Resistance Level (R1) at $2,059 and the Second Major Resistance Level (R2) at $2,104.
ETH Technical Indicators
ETH needs to avoid a fall through R2, R1, and the $1,980 pivot to target the Third Major Resistance Level (R3) at $2,228. A move through the morning high of $2,131 would signal an extended breakout session. However, the crypto news wires and staking statistics should be crypto-friendly to support a breakout.
In the event of an extended rally, the bulls would likely test resistance at $2,300.
A fall through R2, R1, and the pivot would bring the First Major Support Level (S1) at $1,935 into play. However, barring an event-fueled crypto market sell-off, ETH should avoid sub-$1,900 and the Second Major Support Level (S2) at $1,856. The Third Major Support Level (S3) sits at $1,732.
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 $1,903. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
A hold above S1 ($1,935) and the 50-day EMA ($1,903) would support a continued run toward $2,300. However, a fall through S1 ($1,935) and the 50-day EMA ($1,903) would signal a bullish trend reversal.
This article was originally posted on FX Empire
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