Ethereum Price Analysis: 4,000 New Investors Stake $502M ETH ahead of USA Fed Rate Decision

Ethereum Price Analysis

Ethereum price opened trading at $2,419 on Sept 15, retreating 3% after an initial 15% gains within the weekly timeframe, on-chain indicators from ETH 2.0 staking trends suggest investors are anticipating more upside in the week ahead.

Ethereum Price Retreats from $2,500 Resistance

Buoyed by positive macroeconomic indicators, Ethereum price delivered a double-digit growth performance last week. However, as the crypto markets snapped out of a sluggish start to September, Ethereum price still lagged behind the market average, as bulls struggle to drive prices above the critical $2,500 resistance.

Between Sept 7 and Sept 14, Ethereum price recorded 15% gains as prices moved from $2,150 to hit a monthly timeframe peak of $2,462 on Sept 14.  While the likes of Bitcoin (BTC) and Ripple (XRP) briefly broke above key the resistance levels at $60,000 and $0.60 respectively, ETH price failed to retake the $2,500 territory.

At the time of writing on Sept 15, ETH price has retracted towards $2,415, reflecting a 2.6% pullback in the last 48-hours.

However, recent trends observed in Ethereum 2.0 staking contracts signals growing bullish sentiment, a move that could spark trigger another leg-up in the week ahead.

Investors Deposited $400M in ETH 2.0 Staking Contracts after Dovish CPI

Relative to the broader markets trends, Ethereum’s 2.6% price decline over the weekend has been underwhelming. However, strategic investors are capitalizing on the low prices to acquire ETH and join the Ethereum 2.0 staking network.

The Ethereum 2.0 staking network is a mechanism that allows investors deposit incremental units of 32ETH for security and validating transactions, in exchange for passive yield income.

Currently the annual yield on Ethereum staking is around 4.6%. With the US Fed poised to start cutting interest rates, investors are now looking to re-allocate capital towards risk assets markets.

Official data from the ETH 2.0 beacon chain shows there has been significant spike in staking inflows and number of depositors since US CPI figures came in dovish on Sept 11, signaling an imminent rate cut. 

As of Sept 12, investors held a total of 34.19 million ETH in staking contracts, following weeks of steady outflows. However, since the US CPI figures boosted investors’ confidence of a rate cut, ETH staking inflows have been on a rise.

At the time of writing on Sept 15, that total staked value has reached 34.32 million ETH. This signals that investors deposited a total of 130,000 ETH, within the last 72-hours, confirming a positive correlation to the dovish macroeconomic indicators in the CPI report.

Valued at the current prices the total 130,000 ETH staking inflows, mean that investors have made deposits worth approximately $502 million. When investors stake such a high volume of coins within a short period, it reduces the short-term market supply, putting upward pressure on prices.

More importantly, the chart also shows that the number of unique active validators also grew from 1,068,528 on Sept 12 to hit 1,072,531 at press time. Essentially, the reflects that 4,003 new individual stakers have joined the network during that period.

To break things down further, ETH staking inflows grew by 0.38%, mirroring the uptick in active validator, which also increased by 0.37% . This convergence signals that the $502 million inflows are from new investors joining the Ethereum 2.0 staking network and not mere existing investors adding to their positions.

In conclusion, the significant surge in Ethereum staking inflows and new validators, driven by the dovish US CPI report, signals growing investor confidence ahead of a likely interest rate cut.

The addition of $502 million in staking deposits within just 72 hours has tightened the short-term ETH supply, which could create upward pressure on prices.

With new validators entering the network at an accelerated rate, Ethereum’s ecosystem is seeing renewed participation.

ETH Price Prediction: $2,600 Breakout Signals Start of Bull Run

Drawing insights from the current bullish on-chain trends, Ethereum price looks set reverse the 2.6% weekend losses and enter another leg-up in the week ahead.

Technical indicators on the daily ETHUSD chart also affirm this bullish outlook.

First, the Linear Regression Channel, a tool used to track price trends, shows Ethereum trading near the upper boundary of its descending channel. If the $2,500 resistance is broken, it could pave the way for a move toward $2,600 and beyond.

Additionally, the Relative Strength Index (RSI) at 45.43 is approaching neutral territory, indicating that Ethereum is neither overbought nor oversold.

This provides room for price appreciation, particularly if the bulls maintain momentum in the days ahead.

Key resistance levels to watch are $2,500 and $2,600. Breaking through $2,500, a significant psychological level, would confirm the bullish breakout. If Ethereum surpasses $2,600, it could mark the start of a longer-term rally, attracting more buying interest.

On the downside, immediate support lies at $2,350. If the price fails to hold this level, Ethereum could slip toward $2,150. However, given the rising bullish sentiment from increasing staking inflows, a dip below $2,350 seems unlikely.

In summary, a break above $2,500 could pave the way for Ethereum to reach $2,600, signaling the start of a fresh bull run.