- Ethereum’s price has followed a similar pattern to Bitcoin, exhibiting some volatility, with recent staking inflows leading to price declines.
- Analysts predicted a possible upswing for Ethereum and targeted a price of $3,000 as the market adjusted.
Ethereum (ETH), the second-largest cryptocurrency by market cap, continues to follow Bitcoin (BTC) hot on the heels of its quest to reach new highs. So far this week, Ethereum is down 2.1%.
This decline even seems to have continued into the last day, where ETH fell by a modest 0.2% – this price action has resulted in the asset currently trading at a price of $2,619 at the time of writing.
Ethereum staking inflows skyrocket
Ethereum has seen a surge in staking inflows recently as reported by CryptoQuant, indicating a growing interest in securing the network through its Proof of Stake (PoS) mechanism.
This inflow has pushed the total volume of staking investments to over 16,000 ETH. However, there appears to be a correlation between these inflows and the subsequent price declines.
According to the CryptoQuant analyst reporting on this increase in staking inflows, historical data from July and mid-August shows that significant declines in Ethereum’s market price are often preceded by significant increases in staked ETH.
Source: CryptoQuant
These patterns suggest that while staking strengthens network security and stakeholder engagement, it also leads to short-term price volatility due to the locking up of liquidity.
Is a short-term rise to $3,000 still possible?
Meanwhile, some other analysts remained optimistic about Ethereum’s recovery and growth potential.
A prominent crypto analyst known on X (formerly Twitter) as the “Titan of Crypto” has projected a target price of $3,000 for Ethereum.
Source: Titan of Crypto/X
This prediction is based in part on the presence of an unfilled CME futures gap, which historically indicates potential upside in price.
In addition, Ethereum’s fundamental indicators, such as the estimated leverage ratio – at press time at 0.328 according to Data by CryptoQuant – indicated a conservative but stable market leverage situation.
Source: CryptoQuant
Read Ethereum (ETH) price prediction 2024-25
This ratio, along with the current decline in Ethereum’s open interest, is Coin jarindicated a cautious market sentiment.
However, it also showed that there is room for upward momentum if market conditions improve.
Source: Coinglass
