Ethereum Staking Crosses $121 Billion While Price Tests Major Zone

Ethereum is cementing its position in the crypto economy as staking reaches a new record high. According to Crypto Patel, 36,215,116 ETH is now locked in Ethereum’s proof-of-stake system, which is about 29.15% of the circulating supply. At the current price of Ethereum, which is close to $3,350, the value of staked ETH is over $121 billion.

This steady increase in staking is a sign that there is more and more faith in the long-term future of Ethereum. When more people stake their ETH, there are fewer tokens to trade, which helps to prevent large losses during a slow market.

Source: X

It is also a sign that more people are interested in earning rewards on the network rather than trading. With so much ETH staked, Ethereum is viewed more as a foundation layer for Web3 applications.

Also Read: Ethereum (ETH) Price Surges as Daily Transactions Hit Record 2.3 Million

Ethereum Price Structure Shows Stabilization After Sell-Off

From a technical perspective, Ethereum has had a difficult few months. On the 12-hour chart, the market transitioned from a distribution phase to a strong correction.

The sellers pushed hard between $4,200 and $4,600, halting every price increase. This resulted in a number of breaks in structure, indicating that the sellers still had the upper hand until late October and early November.

Source: X

After the last drop, ETH began to form higher lows, indicating that the selling pressure was weakening. This helped the price to consolidate into an uptrend channel. During the course of the recovery, ETH re-entered the fair value range of $3,300 to $3,450.

This region is a common spot where the price reacts after a rapid move. However, just above this region is a large supply region between $3,550 and $3,650. This region is still the biggest hurdle to further gains. If the price is rejected here, ETH will likely return to the channel support line of $3,050 to $3,100.

Momentum Indicators Hint at a Larger Move

On the daily chart, CrypFlow observed that there was a clear shift in momentum. A month ago, ETH was in a double downtrend with weak momentum and low RSI.

Source: X

However, since then, the RSI has broken out of its downtrend and tested it again. The price has broken above the previous downtrend and is currently testing the R1 resistance level. In this cycle, breaks in the RSI have often preceded strong rallies.

Also Read: Ethereum-Bitcoin Retests Critical 8-Year Downtrend, Traders Watch for Breakout