Ethereum (ETH) has demonstrated remarkable resilience despite a nearly 30% price decline, with the total staked ETH reaching an all-time high of 33.98 million. This surge in staking suggests that long-term investors remain confident in Ethereum’s future, even as short-term market sentiment weakens.
Staking Growth Defies Price Weakness
Recent data reveals a significant divergence between Ethereum’s price action and its staking activity. While ETH has plummeted from over $3,200 to around $1,800, the number of staked tokens has continued to rise. This steady increase highlights a growing commitment from investors who see Ethereum’s downturn as an opportunity to accumulate more tokens or maximize their passive yield.
Notably, the rise in staked ETH during early March coincided with a wave of ETF outflows. This contrast indicates that native Ethereum participants remain more optimistic than traditional institutional investors, who appear to be retreating from the market.
ETF Outflows Signal Institutional Hesitation
Despite on-chain confidence, Ethereum spot ETFs have witnessed over $524 million in cumulative outflows in the past three weeks. The most significant withdrawals occurred in early March, wiping out prior gains and reducing total net assets to $6.49 billion.
This mass exodus aligns with ETH’s price dropping below $2,000, hinting at institutional concerns over regulatory delays or a broader risk-off environment. As ETF redemptions persist, they could exert downward pressure on Ethereum’s price, even as long-term believers continue to stake their holdings.
Bearish Sentiment Prevails, But Signs of Reversal Emerge
Ethereum’s daily chart still reflects bearish dominance, with ETH trading around $1,893 at press time. The Relative Strength Index (RSI) remains in oversold territory at 33.13, suggesting that selling pressure may be losing momentum. Additionally, the Moving Average Convergence Divergence (MACD) histogram is fading, hinting at a possible shift in trend.
If ETH falls below $1,850, bearish sentiment could intensify. Conversely, a sustained move above $1,950 would signal a potential short-term recovery.
Also Read: Hyperliquid Hit by $166M Outflow After Ethereum Whale Liquidation Triggers $4M Loss
As Ethereum’s investor base continues to diverge between long-term conviction and short-term uncertainty, the coming weeks will be critical in determining the asset’s next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
