ETH/USD Price Analysis – June 09, 2023

Daily Price Outlook

The Ethereum price is experiencing a decline as the Coinbase ETH liquidity staking platform witnesses a significant amount of withdrawals. The recent charge by the US Securities and Exchange Commission (SEC) against Coinbase has acted as a bearish catalyst for Ethereum’s price.

Coinbase has seen a surge in redemptions of its Ethereum staking token, cbETH, following the lawsuit filed against the exchange by the US financial protection agency for allegedly operating as an unregistered securities exchange.

According to data from Dune Analytics, a total of 35,810 cbETH tokens have been redeemed in the past two days, with 27,280 tokens redeemed on June 6 alone, marking the second-highest daily redemption volume.

Despite the SEC’s complaint, Coinbase has stated its commitment to continue offering staking services. However, as Coinbase is a major institution for ETH liquidity staking, the withdrawal of cbETH is expected to have a bearish impact on Ethereum’s pricing.

The implications for Ethereum’s price have been significant. Following the SEC’s complaint against Binance, Ethereum initially experienced a V-shaped reversal. However, since then, the token’s price has steadily declined, erasing the gains made during its recovery.

As of now, Ethereum is trading at $1,836.22 and has lost 2.2% of its value since Wednesday. The general withdrawals from top liquidity staking services could further pressure the asset and potentially drive its price even lower in the near future.

The Ethereum price currently lacks a clear directional bias. After increased volatility, the price has formed a balanced triangle pattern. However, it has not yet shown a definitive breakout or established a clear trend.

ETH/USD Price Chart – Source: Tradingview

ETH/USD – Technical Outlook

Ethereum is currently oscillating within the range of $1860 and $1830, experiencing a lack of upward momentum. The technical indicators are signaling a bearish sentiment.

The 50-day moving average is acting as a strong resistance level at $1854, indicating the potential for further downward movement. Additionally, both the RSI and MACD indicators align with the bearish trend.

Caution is advised around the crucial support level at $1830. A break below this level could trigger a significant decline toward $1800. If Ethereum fails to hold above the psychological level of $1800, the price may plummet further toward $1775 or even $1760. It is important to monitor the price charts for any developments closely.