Ethereum (ETH) price rebounded 4% to reach $3,220 on January 12, as the crypto market sell-off subsided. On-chain data shows investors making large deposits into ETH 2.0 staking contracts. Has ETH price formed a market bottom?

Ethereum (ETH) Price Gains 4% as Market Sell-off Wanes

Ethereum (ETH) experienced a volatile week, reflecting the broader crypto market dynamics. The recent turbulence was fueled by macroeconomic concerns and the ongoing effects of market-wide liquidations triggered earlier this month.

ETH price dropped by 10% between January 6 and January 9, falling from $3,150 to $2,835 as investors reacted to heightened uncertainty. The broader crypto sell-off was exacerbated by liquidity concerns, which intensified bearish sentiment across major altcoins.

Ethereum Price Action | ETHUSD

However, Ethereum found support near the $2,850 mark on January 10, as selling pressure eased and on-chain activity indicated a shift in sentiment. Investors began making significant deposits into ETH 2.0 staking contracts, reflecting renewed confidence in the network’s long-term potential.

As of January 12, ETH has rebounded 4%, climbing back to $3,220. This recovery hints at the formation of a local bottom, with traders now closely monitoring key resistance levels and potential catalysts for further upward momentum.

Ethereum 2.0 Staking Inflows Surge By $175 Million in 3 Days

Ethereum’s rebound above $3,200 has fueled optimism that the cryptocurrency may consolidate within the $3,150–$3,400 range in the near term.

On-chain data reveals a considerable surge in Ethereum staking deposits, signaling growing confidence among long-term holders and network validators. According to the official data from the Beacon Chain, ETH staking inflows have seen a sharp uptick over since January 9, coinciding with the 4% price rebound.

Ethereum Staking Deposits vs. ETH Price | Source: StakingRewards

As of January 9, the total staked value stood at 33.84 million ETH. Despite the broader market downturn that saw ETH dip below $3,200 earlier in the week, staking activity intensified. Over the past three days, investors staked an additional 53,000 ETH—valued at approximately $175 million at current prices— bringing the total staked to 33.89million ETH as of January 12.

This development offers two key insights into Ethereum’s short-term outlook. Firstly, increased staking cuts down short-term market supply, easing immediate sell-side pressure.

Secondly, the increased staking activity signals a shift in investor behavior. Rather than liquidate holdings during the recent market downturn, a significant cohort of ETH holders opted to lock their assets into staking contracts, leveraging passive rewards as a buffer against short-term price volatility.

While the broader crypto market sentiment remains cautious, Ethereum’s rising staking deposits, position the asset for a steady consolidation above the $3,200 mark in the coming days.

Etheruem Price Forecast: Bulls Set to Hold $3,200 Support

Ethereum price prediction paints an optimistic outlook, with staking deposits mopping up excess market supply from last week’s sell-off. From a technical standpoint, ETH is currently trading $3,271, consolidating near its lower Bollinger Band of $3,116, which offers immediate support.

Ethereum price forecast (ETHUSD)

The Bollinger Bands indicate low volatility as they tighten, signaling a potential breakout ahead, if market sentiment flips positive. However, trading volume remains subdued at 27.72K, and the ADX trending at 20.77, market sentiment remains largely cautious. In essence, weak breakout attempts may struggle to breach the $3,300 resistance.

A bullish scenario could materialize if ETH reclaims the $3,419 midline of the Bollinger Bands, with increased volume supporting the uptrend. Conversely, failure to hold $3,200 may see ETH test the critical $3,116 support level.

The post Ethereum Price Analysis: ETH 2.0 Staking Deposits surge $175M as Traders anticipate $3,500 Rebound appeared first on CoinGape.

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Filed under: News - @ January 12, 2025 9:24 am