Ethereum [ETH] has witnessed a robust demand surge this month, propelling its price to $3,500 for the first time since July. Despite lagging behind Bitcoin’s [BTC] multiple all-time highs this week, Ethereum has posted an impressive 34% gain on monthly charts.
Record Ethereum Staking Inflows
According to IntoTheBlock, Ethereum staking recorded a netflow of over +10,000 ETH in the past week, marking a significant shift after months of net outflows. This influx includes 115,000 ETH deposited and 105,000 ETH withdrawn, showcasing growing confidence among ETH stakers.
Analyst Maartunn attributes this surge to two key factors:
- Rising ETH Prices: As ETH climbs, staking becomes more attractive for investors.
- Improved Infrastructure: Advances in staking platforms and protocols have streamlined the process, encouraging higher participation.
This trend supports ETH price stability by reducing the circulating supply, a key factor in mitigating inflation and driving value growth.
📊 Ethereum Staking Sees Strong Weekly Net Inflows After Months of Outflows
— Maartunn (@JA_Maartun) November 24, 2024
Over the past week, Ethereum staking recorded a net inflow of +10k ETH, with 115k ETH deposited and 105k ETH withdrawn. This marks a notable shift, as deposits have outpaced withdrawals after months of… pic.twitter.com/4SEX60vQUx
Scarcity Fuels Market Optimism
Ethereum’s rising stock-to-flow ratio (SFR) highlights increasing scarcity. Reduced supply paired with heightened demand often creates a favorable environment for price appreciation. Supporting this, data shows that inflows from large holders—commonly referred to as “whales”—have hit monthly highs, signaling strong buying pressure.
Ethereum Price Analysis
ETH has experienced a sharp upswing from $3,031 to $3,500 over the past week, with bullish momentum building despite intermittent bear pressure. As of now, ETH is trading at $3,381, up 7.82% in the past 24 hours.
If buying pressure persists, Ethereum could retest its $3,560 resistance level, setting the stage for further gains.
The combination of record staking inflows, reduced supply, and strong whale activity points to a promising outlook for Ethereum. Should these trends hold, ETH may continue its upward trajectory, solidifying its role as a cornerstone of the cryptocurrency market.
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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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