Ethereum is at a turning point after failing to break the $2,500 mark yesterday, leaving investors uncertain about its next move. As the broader crypto market is expected to be bullish, Ethereum traders keep a close eye on signs of strength within the network. Despite recent price struggles, there are promising signs from blockchain.
Key data from IntoTheBlock suggests growing demand for ETH staking, indicating long-term confidence in the future of the network. This surge in staking activity indicates that investors are still optimistic about Ethereum’s potential, especially with upcoming developments like staking rewards and network upgrades.
However, recent price action has raised concerns, as many expected ETH to climb higher by now, especially after a period of positive sentiment across the market.
With the crypto market poised for a potential rally, Ethereum’s next moves could pave the way for broader market performance. Investors are now watching closely to see whether ETH can regain momentum or whether it will continue to struggle at the current resistance levels. The coming days will be crucial in determining whether ETH can move further and begin 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 is bullish, with investors expecting Ethereum to play a key role in the next upside move.
according to Main data from IntoTheBlock28.9% of all ETH is now staked, a significant increase from the 23.8% recorded in January. This surge in staking activity is a clear indicator of growing long-term confidence in the Ethereum network.
Interestingly, more than 15.3% of Ethereum has been staked for more than three years, which shows that many investors are committed to holding their ETH for the long term. This strong staking activity reinforces the narrative that ETH is viewed as a valuable asset in the evolving crypto landscape and that many investors are betting on its long-term success.
The recent increase in staking and Ethereum’s upcoming network upgrade shows that ETH is well positioned for a potential upside. As market fundamentals continue to improve, the entire crypto market looks poised for a rally, and ETH could lead the lead. If ETH surpasses its resistance level, a significant increase in momentum could occur in the coming weeks.
ETH tests supply levels
Ethereum is trading at $2,434 after failing to break the 4-hour 200 moving average (MA) at $2,458. This technical level has served as an important resistance point, and bulls need to recapture it to maintain the upward momentum.
A key target for Ethereum price action is to surpass the 4-hour 200 MA and break the 200 exponential moving average (EMA) above $2,511. Doing so will strengthen the bullish case and open the door to a potential rally.
However, if ETH continues to struggle and fails to break these important resistance levels, a deeper retracement could be on the horizon. In such a scenario, the next important demand area is around $2,150, which could provide a solid base for a potential rally.
Ethereum investors are keeping a close eye on these levels, with price action in the coming days being key in determining whether ETH can regain its bullish momentum or face the risk of further downside. Bulls must retest key technical indicators or risk losing control of the trend, leading to a retest of lower support areas.
Image displayed from Dell-E, chart from TradingView
