Ethereum (ETH) is trading at $3,440, up over 5% on Wednesday following the release of lower-than-expected U.S. Consumer Price Index (CPI) data.
Despite increased staking withdrawals and lukewarm ETF inflows, ETH could rally above $4,400 if it clears critical resistance levels.
Staking Withdrawals and ETF Flows
The total staked Ethereum dropped by 160,000 ETH in the past four days, continuing a broader trend of increased withdrawals since November 2024.
The decline began as the crypto market rallied after Donald Trump’s presidential election victory. In total, Ethereum staking contracts have lost nearly 800,000 ETH since then.
Ethereum ETFs, meanwhile, ended a four-day outflow streak, recording $1.2 million in inflows on Tuesday. However, the modest inflows reflect lingering skepticism among institutional investors about whether the market has truly shifted bullish.
Technical Outlook
Ethereum has liquidated $46.46 million in positions over the past 24 hours, with short liquidations accounting for $35.19 million.
The top altcoin is testing resistance near the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs).
If ETH breaks above the resistance levels at $3,550 and $3,770, it could validate a rounded bottom pattern.
This formation may propel Ethereum to a three-year high above $4,400. However, bulls must overcome historical sell pressure near $4,100 for this rally to materialize.
- Indicators:
- The Relative Strength Index (RSI) has crossed above its neutral level, signaling growing bullish momentum.
- The Stochastic Oscillator (Stoch), however, is in the overbought zone, suggesting a potential short-term correction.
Downside Risks
A daily close below $2,817 would invalidate the bullish outlook, potentially sending ETH toward $2,200.
Ethereum’s price trajectory depends on clearing key resistance levels and overcoming market skepticism.
While the potential for a rally to $4,400 exists, investors should watch for signs of a correction given overbought conditions and ongoing staking withdrawals.
