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Ethereum’s price has remained under significant pressure over the past month, yet staking activity has surged.
On-chain data shows a notable increase in the amount of $ETH locked in staking contracts, even as the altcoin struggles to regain upward momentum.
$ETH Staking Grows While ETF Outflows Hit $524 Million
Since plummeting to its year-to-date low on February 16, the amount of staked $ETH has risen. With 33.98 million $ETH currently locked in staking contracts, this figure has gone up by 1% over the past month.
This has happened despite the significant drop in $ETH’s value in the past 30 days. Trading at $1,897 at press time, $ETH’s price has plummeted by 30% since February 16.
The divergence suggests that many investors continue to see the coin as a long-term asset rather than a short-term trading opportunity. They demonstrate confidence in $ETH’s future price performance by locking up their coins instead of selling amid recent headwinds.
Moreover, this increased staked $ETH could indicate growing institutional and retail interest in passive yield, even as short-term price action remains unimpressive.
However, this bullish stance contrasts with the recent decline in spot $ETH exchange-traded fund (ETF) inflows, raising questions about broader market sentiment. Data from SosoValue shows that these funds have recorded outflows totaling $524.68 million in the past three weeks.
When $ETH ETFs see net outflows like this, investors are withdrawing more funds than they are putting in. This indicates a bearish sentiment toward the coin and puts more downward pressure on its price.
Ethereum’s Eyes Deeper Pullback—Or a Bullish Reversal?
$ETH trades at $1,897 at press time, breaking below the key support formed at $1,924. The negative readings from its Balance of Power (BoP) reflect the ongoing selling activity among $ETH holders.
As of this writing, this indicator, which compares the strength of the bulls against the bears, is below zero at -0.27. When an asset’s BoP is negative, its sellers exert more control over price action, confirming the downward pressure on price.
If this trend persists, $ETH could continue its decline to trade at $1,758.
On the other hand, if sentiment flips and becomes fully bullish, it could drive $ETH’s price above the $1,924 resistance and toward $2,224.