ETH Price Analysis: Staking Deposits Hit $100 Billion ahead of Ethereum ETF Official Launch

Ibrahim Ajibade
Updated: Jul 11, 2024, 11:11 GMT+00:00

Key Points:

  • Ethereum price has reclaimed the $3,100 mark on July 11, amid bullish tailwinds for ETH ETFs anticipated official launch.
  • According to Bloomberg analyst, the newly approved Ethereum derivatives are expected to begin trading around July 15.
  • Since Monday, July 8, investors have staked an additional 48,670 ETH on the Ethereum 2.0 beacon chain.
Ethereum ETH Price Forecast

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Ethereum Price Analysis

Ethereum price has reclaimed the $3,100 mark on July 11, amid bullish tailwinds from ETH ETFs anticipated official launch, on-chain data shows that investors are staking more coins than usual this week, a move that could spark an accelerated price breakout.

Ethereum Price Climbs above $3,100 As ETF Launch Buzz Grows

On May 24, 2024, the US Securities and Exchange Commission (SEC) approved Ethereum Exchange-Traded Funds (ETF) from various US-based fund managers. But since then, the fund sponsors have been stuck in a cycle of final adjustments, and clarification of specific operational details, delaying the official launch of the newly-approved Ethereum spot derivatives.

As the delays persistent into its second month, short-term traders grew disillusioned, and entered rapid sell-offs that has seen Ethereum price slide to record lows.

Ethereum Price Action (ETH/USD) | TradingView
Ethereum Price Action (ETH/USD) | TradingView

On Friday July 5, Bloomberg analysts published claims that Ethereum ETFs are now likely to go live around July 15. This appears to have boosted market demand, with Ethereum price entering a steady rise since July 6.

The daily price chart above shows that Ethereum has printed 4 consecutive green candles, rebounding 12.3% from the 100-day lows recorded last Friday.

Ethereum Whales Enter $152 Million Staking Spree ahead of ETF Launch

But looking beyond the price action, whale investors on the Ethereum network have been taking long-term bullish positions on ETH this week, in reaction to the  new expected ETF launch date announced.

Ethereum 2.0 Staking Trends | Source:
Ethereum 2.0 Staking Trends | Source:

The chart above tracks real-time changes in the number of ETH coins deposited in the Ethereum 2.0  beacon chain.

Investors have deposited 32,928,806 ETH in staking contracts according to the latest data at the time of writing on July 11. Zooming out, this represents an increase of 48,670 ETH, from the figures recorded at the start of the week on Monday, July 8.

Valued at the current ETH price, the total value of staked ETH 2.0 deposits has now exceeded $103 billion, following the newly-deposited 48,670 ETH ($152 million) recorded this week.

This underlines that many large Ethereum investors are increasingly taking coins out of their trading wallets, and locking them in staking contracts, in hopes of front-running potential upside from the anticipated ETF inflows.

By taking out another $152 million worth of ETH from the market supply this week, selling pressure on Ethereum is expected to further cool off in the days ahead, putting bulls in position to drive a breakout towards $3,500.

Ethereum Price Forecast: All Eyes on $3,500 Retest

ETH price has shown signs of a bullish recovery, climbing to $3,146.91 as of July 11. This recovery comes after a notable dip that saw ETH hit lows around $2,800. The price action over the past few days indicates a potential for further upward momentum, driven by key technical indicators.

The 7-day Simple Moving Average (SMA) is currently at $3,164.27, acting as immediate resistance. A successful breach of this level could pave the way for Ethereum to target the next significant resistance at $3,500.

he Relative Strength Index (RSI) strategy shows ETH gaining strength, indicating that buyers are regaining control, which supports the bullish outlook.

Ethereum Price Forecast | (ETH/USD) July 2024| TradingView
Ethereum Price Forecast | (ETH/USD) July 2024| TradingView

However, the journey to $3,500 is not without challenges. Immediate support is seen around the $3,000 mark, a psychological and technical level. If it fails to maintain above this support, a retracement toward $2,800 could be on the cards.

In summary, Ethereum’s price action suggests a potential retest of $3,500, provided it can break through immediate resistance at the 7-day SMA and maintain support at $3,000.


About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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