Ethereum price forecast: ETH investors stake $250M as Bitcoin loses market share amid Gensler’s exit

Price analysis: 

Ethereum price retraced towards $3,300 on Tuesday, November 25, down 6.6% after briefly hitting a newly yearly peaks above $3,546 on Monday. On-chain staking data shows investors staked large amounts of ETH since Gensler’s exit confirmation.

Ethereum price finally breaches $3,500 resistance as BTC.D slides

Relative to Bitcoin, Ethereum price has underperformed considerably in November 2024. But that trend flipped over the past week after the US SEC confirmed Gary Gensler’s imminent exit on Nov 21.

This vital news event has triggered increased demand for major altcoins that have endured increased regulatory scrutiny under Gensler’s regime.

As, investors began to channel capital towards the altcoin market in hopes that a crypto-friendly replacement could ease US regulatory stance.

In effect, top altcoin including Ethereum, XRP, Solana and Cardano all scored broke above key resistance levels while Bitcoin stagnated below the $100,000 mark.

Validating this narrative, the chart above shows how Ethereum price rose 15.7%, moving from $3,032 on November 21, to hit a new 5-month peak of $3,546, on November 25, before retracing 6.6% towards $3,310 at press time on Nov 26.

Meanwhile, the Etherum price rally coincided with a 4% decline in Bitcoin Dominance (BTC.D). With BTC.D declining amid broader crypto market capitalization rise, it signals that traders are re-routing capital towards altcoins since Gensler’s exit confirmation.

Investors staked $250 million amid Gensler’s exit confirmation

While Gensler’s imminent exit has triggered increased market demand for  altcoin, rising staking inflows is another key catalyst supporting the ETH rally.

The official data from the Ethereum’s beacon chain show the network attracted significant staking inflows amid the recent rally. This move reduced sell-side pressure and could potentially see ETH hold key support levels in the days ahead.

The chart above shows the total staked value on the Ethereum network stood at 34.1 million ETH as of November 23. That figure has now surged to 34.3 million ETH at press time on November 28, reflecting that investors staked an additional 74,308 ETH.

Valued at the current prices the recent Ethereum staking inflows are worth approximately $250 million in the last 3-days.

Within the context of the current market events, this suggest Gensler’s imminent exit has enhanced investor confidence in Ethereum’s long-term prospects.

More so, by pulling $250 million from the short-term market supply, ETH market could witness reduced sell-side pressure as crypto markets enter a consolidation phase this week.

ETH Price Forecast: $4,000 rally in play if $3,280 support holds

Ethereum’s price has seen a sharp 6.6% decline over the last 24 hours, spurred by cascading market liquidations following MicroStrategy’s significant Bitcoin purchase announcement on Monday.

Despite the bearish pressure, Ethereum’s price has demonstrated resilience around the $3,300 mark, supported by $250 million staking inflows thinning out the short-market supply.

At press time, Ethereum price is holding above $3,300, a crucial short-term support level, significantly higher than the $3,280 support line. This demonstrates that short-term buyers remain in profit and are hesitant to sell.

If this key support remains intact, it could act as a springboard for the next bullish leg.

More so, the RSI (Relative Strength Index) has dipped below 60, currently sitting at 46.56, signaling that Ethereum is no longer overbought but still hovers within a neutral zone.

If the ETH RSI trends toward 50 or lower while the price stabilizes above $3,280, this could suggest a potential rebound.

 

If Ethereum closes above $3,280 in the coming sessions with increased trading volume, it may reignite bullish momentum. However, a decisive breakout above the psychological resistance at $3,500 is imperative for Ethereum to pave the way toward $4,000.

On the downside, if Ethereum fails to sustain its hold above $3,300 and breaches the $3,280 support, it could trigger a bearish continuation. This breakdown may lead to increased selling pressure, with the next support levels to watch around $3,000 and $2,800.