Looking at the chart above, ETH 2.0 staking deposits were initially reduced to 33,300,500 ETH on Friday, October 11th. This number increased significantly over the weekend, reaching 33,341,364 at the time of writing on October 14th. This reflects that investors deposited approximately 43,840 ETH worth. 110 million in the last three days.
When staking inflows increase during an uptrend in price, strategic investors interpret it as a major bullish momentum signal. There are two reasons for this. First, this shows that the majority of Ethereum's key stakeholders are reluctant to take early profits at current price levels.
Additionally, the increase in staking deposits will temporarily reduce the supply of ETH that can be traded on exchanges. If this short-term supply decreases during a period of high market demand, prices are likely to rise sharply.
Apparently, $110 million in staking deposits contributed to ETH's 10.43% price increase, outperforming Bitcoin's performance amid a surge in demand caused by China's inflation reports.
If current market dynamics continue, ETH price could rise further towards $2,600 by the end of October 2024.
ETH Price Prediction: Technical Signals Hint at $2,600 Breakout
Ethereum price is currently showing bullish momentum after breaking through the key resistance level at $2,500. As shown in the ETH/USD daily chart, Ethereum price reached a high of $2,542 on October 14th following a series of price increases and increased demand across the crypto market.
The Fibonacci arc overlay on the chart shows strong support at the 61.8% and 100% levels, suggesting further upside potential in the short term. Ethereum is currently holding above the middle Bollinger Band, indicating a continuation of the uptrend. This is further supported by the tightening of the Bollinger Bands, indicating lower volatility and the possibility of an imminent breakout.
