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 | ETHUSDHowever, 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: StakingRewardsAs 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 ($0.20) 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.
