The Ethereum price has failed to rise above $3,000 as the investor demand to stake tokens continues to wane. Ethereum bulls can they regain their momentum to push beyond this important level?
You can read more about it here:
- Ethereum has fallen 30% in price over the last 30 days.
- In the last few months, the amount of ETH staked has dropped significantly.
- On the daily chart, a death cross pattern is in progress.
Data from Crypto.news shows Ethereum (ETHOn Nov. 26, it reached a high intraday of $2,973. The price of bitcoin failed to surpass the $3,000 psychological threshold, and was only $2,938 by press time. The second largest crypto asset, with a market capitalization of $354.5 billion is still down by nearly 30% in the last month, and trading at a 40.6% discount to its August high.
Ethereum’s price is constantly facing resistance around $3,000, and today, despite continued weak staking flows, it failed to surpass that level.
Staking inflows, as a metric to put into context, are a measure of when investors remove their ETH from exchanges and stake them. Staking, as a cryptocurrency that uses proof-of stake to verify its ownership, helps to strengthen the security of Ethereum’s network. The asset price is usually supported by staking, because the ETH has been locked away and is removed from circulation.
Data CryptoQuant’s data indicates that the amount of staking has dropped dramatically from nearly $160,000 towards the end October, to $2,941 as we speak. This is due to traders continuing their rotation into other cryptocurrency that offers higher yields for lower investment levels.
“Investors still find Ethereum, currently priced [around $2,900], too expensive to stake. This situation could push the price down toward $2,500,” CryptoQuant analyst noted A recent market report.
At press time, the annual staking yield for Ethereum was around 1.9–2%, far lower than some of its competing proof-of-stake cryptocurrencies, such as Avalanche at 4.7%, Solana at 4.2%, and Bittensor at 14.7%.
Ethereum ETFs also have a bearish outlook as they’ve seen significant net outflows totaling $64 million since the start of November. $1.56 billion So far. The institutional investors that had supported ETH by way of ETFs have turned away from the asset at least temporarily.
Ethereum’s daily chart has multiple bearish patterns, which may keep traders away and possibly trigger a sharper short-term corrective move.
The 50-day simple trend is nearing a crossing with the 200-day, which will form a “death cross”, a pattern usually preceding a long-term downtrend, and signaling a slowing of market momentum.
As per a previous report From crypto.news it appears that altcoin’s price has also formed a rounded-top pattern. Another bearish structure that signals the end of buying pressure, this could be a precursor to an extended drop.
Traders are keeping their eyes on a $2,370 to a $2470 range, as this has been a zone that historically provided strong support early in the year. Bulls also staged successful recoveries from here. This area is vulnerable to even greater losses if the market drops significantly below it.
On a positive note, Ethereum may see a rally of recovery if it breaks free from the pattern falling wedge that also appears on the daily chart. If an asset is able to break out of the falling wedge it can be a sign that a bullish turn will soon occur, particularly if there’s substantial volume or positive sentiment in the market.
Disclosure: The article is not intended to be investment advice. This page is intended for informational purposes only.
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Source: crypto.news
