Ethereum price forecast: $150M staking deposits to trigger $4k rebound?

Price Insights:

Ethereum price has now retraced 22% from its 2024 peak, as price dropped toward a monthly low of $3,059  on Monday, March 20. But, on a positive now, on-chain data shows that Ethereum holders have started taking on bullish positions again after the widespread sell-off that heralded the Dencun upgrade.

Is ETH price on the verge of entering a major rebound towards $4,000?

Investors deposited $150M into ETH 2.0 staking contracts in the last 48 hours

Ethereum price had raced to a 2024 peak of $4,090 on March 12. But traders selling-the-news in the aftermath of the success Dencun upgrade execution inadvertently sent ETH spiraling into a 22% correction.

While market demand remains lacklustre, a rare bullish trend observed among ETH key stakeholders and node validators this week offers a glimmer of hope.

The beacon chain data shows that after last-week’s profit-taking wave Ethereum investors have started staking their coins again.

Following the Dencun upgrade on March 13, a large number of investors withdrew their coins from staking contracts potentially to take profits or diversify their portfolio. But since March 17, the trend has flipped positive.

As seen above, the beacon chain staking deposits grew 46,723 ETH in the last 48 hours. Valued at the current price, those newly-staked coins are worth $150 million.

A rapid increase in staking during a price dip can be an early signal of an imminent rebound phase. Firstly its signals that investors are growing reluctant to sell more coins at the current prices, instead opting to tide over the bearish market phase by stake their coins for passive income.

Also, increased staking puts upward pressure on ETH price as it takes out a significant amount of coins from the immediate market supply.

Hence, if the staking deposits keep increasing, Ethereum could soon enter a recovery phase in the coming days.

Ethereum price forecast: Bulls battling to hold the $3,175 support

At the time of writing on March 20, Ethereum price has bounced back above the $3,200 mark. In terms of short-term price action, the lower-limit of the Bollinger band technical indicator highlights that ETH could find a significant support at the $3,175 range.

If the bulls can regroup to form a major buy-wall around that territory, it could set the stage for another attempt at the $4,000 milestone.

But if the market flips bullish, the 20-day Simple Moving Average (SMA) price of $3,683 could for a major resistance. But with market demand still flat, ETH price is unlike to scale that sell-wall.

In effect, a neutral consolidation within the $3,200 to $3,600 area appears the most viable Ethereum price forecast for the coming days.