ETH Staking Inflows Offset Withdrawals to Support a Return to $2,000

On Wednesday, Ethereum (ETH) increased by 0.05%. Tuesday saw ETH rise 1.30% and close the day at $1,867. Significantly, ETH made its first return to the $1,950 level since April 21.

Following the market more broadly, ETH increased to a noon high of $1,965. At $1,895 and $1,925, respectively, ETH broke through the First Major Resistance Level (R1) and Second Major Resistance Level (R2). But after the turn, ETH dropped to a late low of $1,786. Before ending the day at $1,867, ETH briefly breached the First Major Support Level (S1) at $1,819.

US Government Debt Ceiling and Fears of a Recession Caused ETH to Drop to Under $1,900

The Wednesday session was really active. Focused on were the US banking industry, economic indices, and business profits.

Goods Orders Non-Defense Ex-Air fell by 0.4% in March after dropping by 0.7% in February, as US economic indicators continued to glow red.

In reaction to Q1 financial data, Meta Platforms (META) soared 11.63% in after-hours trade, providing late support, thanks to US corporate profits. The problems at First Republic Bank (FRC) led to the bullish attitude.

Corporate profits and the potential for another US bank failure offered support, but news about the US government's debt limit caused a reversal in the afternoon before Capitol Hill decided to lift the bar.

The withdrawal profile became bearish while the staking statistics remained bullish.

Staking inflows increased from 81,600 ETH on Tuesday to 103,712 ETH on Wednesday, according to CryptoQuant. A recovery to 100,000 is a sign of strength for the bulls, indicating that the total amount staked will continue to rise.