Ethereum Price Forecast: ETH Flashes another $660M Signal after 23% Gains in May 2024

FXEmpire.com -

Ethereum price closed May 2024 above the $3,761 mark, reflecting a 24% growth performance, recent surge in ETH 2.0 staking could spark another major rally in June 2024.

Investors deposited $660M into ETH 2.0 staking contracts in the last 72 hours

Ethereum continues to dominate the crypto market headlines as investors brace up for the ETH ETFs official launch speculated to be listed in June.

At the time of writing, ETH price has already surged by another 2% in the first 2 days of June 2024, after having closed May with a 23.54% growth performance.

Ethereum Price Action (ETH/USD) | TradingView

While market demand still remains lacklustre, a rare bullish trend observed among ETH key stakeholders and node validators flashes as sparked optimism as June 2024 unfolds.

The beacon chain data shows that after last-week’s profit-taking frenzy, Ethereum investors have started staking their coins again.

Ethereum (ETH 2.0) staking deposits | May 30 to June 2, 2024 | Source: Beaconcha.in

Since May 30, a large number of investors began staking their coins after a 3-day withdrawal streak that saw the total stake fall to weekly low of 32,193,980 ETH.

As seen above, the beacon chain staking deposits grew 175,358 ETH in the last 72 hours. Valued at the current price, those newly-staked coins are worth $661 million.

A rapid increase in staking during a price dip can be an early signal of an imminent rebound phase. Firstly its signals that investors are growing reluctant to sell more coins at the current prices, instead opting to tide over the bearish market phase by stake their coins for passive income.

Also, increased staking puts upward pressure on ETH price as it takes out a significant amount of coins from the immediate market supply.

Hence, if the staking deposits keep increasing, Ethereum could soon enter another major leg-up toward $4,000 in the week ahead.

Ethereum price forecast: All Eyes on the $4,200 Resistance

At the time of writing on June 2, Ethereum price has bounced back above the $3,830 mark. In terms of short-term price action, the lower-limit of the Bollinger band technical indicator highlights that ETH now faces significant resistance at the $4,250 range.

If the newly-staked $660 million ETH triggers a supply squeeze, Ethereum price stage another attempt at the $4,000 milestone in the coming days.

Ethereum (ETH) Price Forecast, June 2024 | Source: TradingView

But if the market flips bearish, the 20-day Simple Moving Average (SMA) price of $3549, could form a major short-term support cluster. But with market supply thinning,  ETH price is unlikely to fall below the support level.

This article was originally posted on FX Empire

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