Ethereum’s Wild Ride: Staking Demand Takes a Nosedive!

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Oh dearie me! Ethereum’s price has been about as exciting as watching paint dry lately! It’s just been lounging around, barely shifting for the past day and a bit, and it’s down more than 5% over the week. But wait! What’s this? A tiny little bounce back of about 4.5% since February 19! Isn’t that sweet? It must be getting a pep talk from its bullish buddy on the chart!

Now, usually, when you see a bullish divergence, it’s like finding a shiny penny on the street – it means things might be looking up! But hold your horses – there’s a hitch! A sudden plummet in staking demand has everyone scratching their heads. Is that sneaky liquidity lurking around, ready to spoil the party?

Bullish Divergence Dances In, While Staking Demand Wobbles Like a Jelly!

It all started with a jolly little bullish divergence between February 15 and February 19. You see, a bullish divergence is when the price takes a tumble while the Relative Strength Index (RSI) is doing a happy jig and going higher. This cheeky RSI tells us if folks are buying or selling like mad!

So, when the RSI perks up while the price mopes around, it often means sellers are waving the white flag. That’s how Ethereum managed to claw its way up from a low of $1,740 and scamper back to $1,970. Bravo, Ethereum! But wait…

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Just as our hero Ethereum was feeling good, the staking data from BeInCrypto analysts came crashing in like an uninvited guest at a tea party. Staking involves locking away ETH to help keep the Ethereum world spinning and earn some rewards. The problem? When demand drops, those coins come hopping back into the market, ready to cause chaos!

Lo and behold! Ethereum’s six-month cumulative net staking deposits have plummeted from 1,994,282 ETH on January 13 to just 1,008,012 ETH on February 22. That’s a hefty drop of about 986,000 ETH, or nearly 50%! Goodness gracious!

This nosedive means there’s a lot less ETH being tucked away in staking! Oh, what a pickle! This means more ETH is out and about, ready to unleash its selling prowess. So now we’re left pondering: Where is this returning ETH off to?

Exchange Balances and Whale Shenanigans Signal Liquidity is on the Move!

Here comes the next clue, straight from the exchange balance data! Ethereum balances on exchanges have crept up from 14,241,203 ETH to 14,586,720 ETH. That’s an increase of about 345,500 ETH – roughly 2.4%! Who knew exchanges could be so lively?

When exchange balances go up, it means there’s more ETH itching to be sold. And guess what? This level of ETH is reminiscent of the raucous days of February 4, when Ethereum’s price took a dramatic dive from $2,140 to $1,820 in just one day. Talk about a rollercoaster ride!

Now, this uptick lines up perfectly with the decline in staking, confirming that dwindling staking demand is sending lots of liquid ETH back into circulation. And hold on to your hats – the whales are making waves too! Since February 19, these big shots have dropped their holdings from 113.65 million ETH to 113.42 million ETH. That’s a sale of about 230,000 ETH in just three days! Where are they going? To buy a yacht?

Instead of cheering for Ethereum’s recovery, these large holders might just be unloading their goodies to take advantage of all that fresh liquidity. What a cheeky move!

Cost Basis Clusters Show Why the Ethereum Price Recovery Faces a Mountain of Resistance!

Now let’s get to the juicy part! On-chain cost basis data reveals where the resistance might rear its ugly head. Cost basis indicates the price levels where investors bought their ETH. When prices return to these levels, many holders scramble to sell at breakeven, creating resistance unless something magical happens to keep them holding on.

This fun fact comes from the UTXO Realized Price Distribution, or URPD – quite the mouthful, isn’t it? Even though Ethereum works with accounts, this metric gives us a peek into how the supply is spread out.

It turns out that more than 2% of Ethereum’s supply is bunched up between $2,020 and $2,070. How convenient! These levels align snugly with resistance on Ethereum’s price chart. Isn’t that just splendid?

So here’s the big test! If Ethereum’s recovery is to continue, it first needs to break past $2,050 and then take on the $2,140 challenge. Maybe it will reach for the stars at $2,300! But beware! With so many holders ready to sell near $2,020 and $2,070, $2,050 becomes the hotspot to watch.

With staking demand slipping and whales already cashing in, gobbling up this supply when the price hits those critical levels could be trickier than teaching a cat to fetch!

On the flip side, the key support level is sitting pretty at $1,890, about 4% below the current price. Should this support crumble, Ethereum could tumble back toward its previous low of $1,740. Oh, what a nail-biter!

So here we are, with Ethereum dangling in a precarious position! The bullish divergence has cracked open the door for a possible recovery. But with falling staking demand, rising exchange balances, whale selling, and heavy resistance lurking about, it’s anyone’s guess what will happen next. Grab your popcorn, folks!

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2026-02-22 18:20