Ethereum Price Forecast: Investors Stake $208M in 5-Days as ETH Braces for Rebound

Ethereum Price Analysis:

Ethereum price tumbled below the $2,500 support level on Thursday Oct 24, down 9.5% from the monthly peak of $2,678 recorded on Monday. On-chain data shows that investors have turned towards ETH 2.0 staking revenue amid the market correction phase. Could this sharp decline in short-term market supply trigger an early rebound?

Ethereum’s Weekly Timeframe Correction Hits 10% Mark

After closing 3 consecutive days in decline, Ethereum price sank towards $2,500 mark on Thursday. In comparison to the broader crypto market trends, the latest ETH downswing comes against the run of play, as rival Layer-1 coins including Bitcoin (BTC) and Solana (SOL) delivered considerable gains.

Notably, massive inflows from Blackrock’s IBIT Bitcoin ETF on Oct 23 had lifted BTC into a mild 4% recovery above the $67,000 level within the daily timeframe.

Likewise, rising demand for newly-launched Solana memes had propelled SOL price to an 85-day peak of $175 in the early hours of the trading session, leaving ETH price lagging behind the market average.

The ETHUSD price chart shows how Ethereum’s decline towards $2,514 at the time of writing brings its weekly timeframe losses to 9.51%.

Investors Make $200M Deposits into ETH 2.0 Staking Contracts as Prices Wobble

Within the current market dynamics, Ethereum appears to be struggling to find buyers as traders appear to be leaning towards more profitable sectors.

However on-chain data trends suggests that existing ETH holders are looking to cool the sell-side pressure, a move that could potentially trigger a sharp rebound  in the coming days.

The hart below tracks the daily flow of ETH deposits and withdrawals on the official ETH 2.0 beacon chain staking contracts. The changes in total staked value provides real-time insights into Ethereum’s largest stakeholders’ sentiment.

Looking at the chart above, Ethereum’s total staked value stood at 34.3 million ETH on October 20, when the price reached a monthly peak of $2,762. However, as prices began to decline over the last four days, a majority of network participants chose to ride out the correction phase by staking more coins.

As of October 24, the total staked value has increased to 34.4 million ETH. This implies that over the past four days, Ethereum investors deposited an additional 82,724 ETH, worth approximately $208 million.

When investors increase staking during a price correction, it signals two critical factors.

First, it shows that the largest ETH stakeholders maintain confidence in Ethereum’s long-term price prospects. Hence, rather than sell during ongoing market dip, the have opted to stake their holdings and earn passive income, mitigating short-term losses as they await the future gains.

Most importantly, these staking inflows temporarily reduce ETH short-term supply available for trading. This reduction in sell-side pressure increases the likelihood of Ethereum avoiding a major breakdown below $2,500 in the near-term.

ETH Price Forecast: Bulls to Hold $2,500 Support Line

As of Oct 24, Ethereum price has declined 9.5% in the last 4-days. However, the positive sentiment observed across rival Layer-1 markets, and the $204 million staking inflows recorded amid this correction phase suggest ETH is unlikely to breakdown below the $2,500 psychological support level.

Affirming this optimistic price forecast, the Bollinger bands and Parabolic SAR technical indicator emphasize that a rebound towards $2,600 could be on the cards.

As depicted on the ETHUSD daily price chart below, the Bollinger Bands reflect the heightened volatility, as the price hovers near the 20-day MA at $2,530, suggesting a potential bounce-back.

If bulls can hold the $2,500 support level, a retest of the immediate resistance at $2,600 is on the cards. Above that, the mid-range resistance at $2,748, aligned with the Bollinger midline, becomes the next target,