Ethereum Staking Rises Despite Price Struggle: A Sign of Long-Term Confidence?

While Ethereum’s price has been under significant pressure over the past month, staking activity has increased.

Data shows that there has been a significant increase in the amount of ETH locked up in staking contracts as the altcoin struggles to gain traction.

ETH Staking Grows, ETF Outflows Hit $524 Million

Since hitting a yearly low on February 16, the amount of ETH being staked has increased. With 33.98 million ETH currently locked up in staking contracts, this figure is up 1% in the past month.

This is despite the value of ETH falling significantly over the past 30 days. At $1,897 at press time, the price of ETH has fallen by 30% since 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 are locking up their coins rather than selling them, showing their confidence in ETH’s future price performance.

Furthermore, this increased staking of ETH could indicate increasing institutional and individual interest in passive income, even if short-term price movements are not impressive.

However, this bullish stance contrasts with the recent decline in spot ETH exchange-traded fund (ETF) inflows, raising questions about broader market sentiment. According to the data, these funds have seen a total outflow of $524.68 million in the past three weeks.

When ETH ETFs see net outflows like this, investors are pulling in more funds. This indicates a bearish outlook for the coin and puts more downward pressure on the price.

Ethereum Eyes a Deeper Correction—Or a Bullish Turn?

ETH is trading at $1,897 and has fallen below key support at $1,924. The negative readings from the Balance of Power indicator reflect selling activity among ETH holders.

This indicator, which compares the power of the bulls to the bears, is below zero at -0.27. When an asset’s BoP is negative, its sellers exert more control over the price action, confirming the downward pressure on the price.

If this trend continues, ETH could continue trading at $1,758.

On the other hand, if the sentiment turns completely bullish, it could push the price of ETH above the $1,924 resistance and towards the $2,224 high.