largest altcoin Ethereum (ETH) $3,240.3gained 4 percent during the day and rose to 3 thousand 220 dollars. The rise in price occurred as the selling pressure in the cryptocurrency market eased. On-chain data reveals that investors are making large transfers to Ethereum 2.0 staking contracts. This activity was interpreted as ETH’s price may have hit the bottom.
Ethereum Price Increased as Selling Pressure Eased
Ethereum has displayed a volatile performance in recent weeks, reflecting market dynamics. Macroeconomic concerns and the effects of the previous wave of liquidations triggered fluctuations in prices. As you may remember, between January 6-9 ETHdecreased by 10 percent from 3 thousand 150 dollars to 2 thousand 835 dollars. This drop in price increased bearish sentiment, fueled by liquidation concerns and massive selling.
However, Ethereum found support at $2,850 on January 10. It showed that investor sentiment had changed as selling pressure eased and on-chain activity picked up. Ethereum 2.0 ETH transfers to staking contracts also increased confidence in the long-term potential of the network.
As of January 12, the price of ETH reached 3 thousand 220 dollars, an increase of 4 percent. This recovery may indicate that the price has formed a local bottom. Investors are carefully monitoring key resistance levels and potential upside catalysts.
Ethereum 2.0 Staking Investments Increased by 175 Million Dollars
The recovery in the price of ETH increased consolidation expectations in the range of 3 thousand 150 – 3 thousand 400 dollars. On-chain data reveals a significant increase in investments in staking contracts. This reflects the confidence of long-term investors and network validators.
Beacon Chain According to data, as of January 9, the total staking amount was 33.84 million ETH. It is especially noticeable that staking activities have accelerated despite the price drop. Accordingly, 53 thousand more ETH were staked in the last three days. This means there is an increase in staking contracts worth approximately $175 million at current prices. As of January 12, the total amount of staked ETH reached 33.89 million.
This development has two important consequences for Ethereum’s short-term outlook. First of all, the increase in staking activities reduces short-term market supply, thus relieving selling pressure. Second, it marks a significant shift in investor behavior. Despite the decline in price, many investors have chosen to lock their assets in staking contracts instead of selling them.
Can Ethereum Maintain the $3,200 Support?
Increased staking activity for Ethereum could stabilize the market supply, keeping the price above $3,200. From a technical standpoint, ETH is currently trading at $3,271. Bollinger BandThe lower limit of 3 thousand 116 dollars currently provides instant support. This narrow band signals low volatility and a possible breakout.
However, the trading volume remains at 27.72 thousand, which shows that the market is still cautious. Transaction volume must increase for the price to exceed $3,300. If ETH regains $3,419, the middle line of the Bollinger Band, the rise may gain momentum. However, if the $3,200 support is broken, the price may test $3,116.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
