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Ethereum staking is still rising amid rising prices: a sign of confidence in long futures?
In the last month, Ethereum's price has come under considerable pressure, but staking activity has increased.
The data shows that the amount of ETH locked in staking contracts has increased significantly as this alternative coin struggles to gain market share.
Ethereum staking grew, with ETF outflows reaching $524 million
Since hitting a yearly low on February 16, the amount of ETH staked has increased. There are currently 33.98 million ETH locked in the staking contract, a figure that has increased by 1% in the past month.
Although Ethereum's value has dropped significantly over the past 30 days, the price of Ethereum is $1,897 so far, down 30% from February 16.
This divergence suggests that many investors continue to view the coin as a long-term asset rather than a short-term trading opportunity. Despite the recent difficulties, they chose to lock up their coins rather than sell them, showing their confidence in Ethereum's future price performance.
In addition, the increase in ETH staking may indicate increased institutional and individual interest in passiv e income, even if short-term price fluctuations are not impressive.
However, this bullish attitude stands in stark contrast to the recent decline in spot Ethereum ETF (ETF) inflows, raising questions about broader market sentiment. According to the data, these funds have outflowed a total of $524.68 million in the past three weeks.
When Ethereum ETFs see this net outflow, investors are absorbing more money. This indicates a pessimistic outlook for the coin and exerts more downward pressure on the price.
Ethereum may now see a deeper correction – or a bullish turnaround?
Ethereum (ETH) is trading at $1,897, having broken below the key support level of $1,924. The negative reading of the Energy Balance indicator reflects selling activity among Ethereum holders.
This indicator, which compares the power of the bulls with the forces of the bears, is currently at -0.27, which is below zero. When the buying and selling power indicator of an asset is negative, the seller has more control over the price movement, confirming the downward pressure on the price.
If this trend continues, ETH may continue to trade at $1,758.
On the other hand, if the sentiment becomes completely bullish, it could push the ETH price above the resistance of $1,924 and towards the high of $2,224.