Ethereum is at a critical juncture after failing to break above the $2,500 mark yesterday, leaving investors unsure of its next move. While the broader crypto market expects a rally, Ethereum traders are keeping a close eye on signs of strength within the network. Despite the recent price struggles, there are promising signs from the blockchain.
Key data from IntoTheBlock suggests growing demand for ETH staking, reflecting long-term confidence in the network’s future. This increase in staking activity indicates that investors are still optimistic about Ethereum’s potential, especially with upcoming developments such as staking rewards and network upgrades.
However, the recent price action has raised concerns as many had expected ETH to move higher by now, especially after a period of positive sentiment in the market.
Now that the crypto market is primed for a possible rally, Ethereum’s next steps could set the tone for broader market performance. Investors are now watching closely to see if ETH can regain strength or if it will continue to struggle at the current resistance levels. The coming days will be critical in determining whether ETH can break out and initiate a sustained uptrend.
Ethereum staking signals long-term confidence
Ethereum is trading below a key resistance level as the broader crypto market prepares for a potential rally in the coming weeks. Market sentiment has become increasingly optimistic, with investors expecting Ethereum to play a crucial role in the next upward movement.
According to key data from IntoTheBlock28.9% of all ETH has now been staked, a significant increase from the 23.8% recorded in January. This increase in betting activity is a clear indicator of the growing long-term confidence in the Ethereum network.
Interestingly, more than 15.3% of Ethereum has been invested for more than three years, showing that many investors are committed to holding their ETH for the long term. This strong betting activity reinforces the narrative that ETH is seen as a valuable asset in the evolving crypto landscape and many investors are betting on its long-term success.
Ethereum’s recent increase in stakes and upcoming network upgrades suggest that ETH is well positioned for a potential surge. As market fundamentals continue to improve, the entire crypto market appears poised for a rally, and ETH could lead the charge. If ETH breaks through its resistance levels, the momentum could drive significant upside in the coming weeks.
ETH test supply levels
Ethereum is trading at $2,434 after failing to break above the 4-hour 200 moving average (MA) of $2,458. This technical level has acted as a key resistance point, and bulls must regain it to maintain upside momentum.
A key target for Ethereum’s price action is to surpass the 4-hour 200 MA and break the 200 exponential moving average (EMA) at $2,511. This would reinforce the bullish situation and open the door for a potential rally.
However, if ETH continues to struggle and fails to break through these critical resistance levels, a deeper retracement could be on the horizon. In such a scenario, the next key demand zone is around $2,150, which could provide a solid base for a potential recovery.
With Ethereum investors keeping a close eye on these levels, price action in the coming days will be crucial in determining whether ETH can regain its bullish momentum or face further downside risks. Bulls must regain key technical indicators or risk losing control of the trend, leading to a retest of lower support zones.
Featured image of Dall-E, chart from TradingView