Ethereum Drops 9.4% Amid Market Consolidation, Staking Hits Record High

Ethereum has recently faced challenges in maintaining its upward momentum, with its price currently trading at $2,511 after a brief rally that pushed it above $2,800 last week. This decline of 9.4% over the past week reflects a broader period of consolidation across the digital asset market.

Technical analysis indicates that Ethereum is encountering significant resistance levels. According to İbrahim COŞAR, a contributor to CryptoQuant’s QuickTake platform, the 50-week exponential moving average (EMA) is a crucial resistance level for ETH. Historically, successful breakouts above this technical marker have been followed by substantial price gains, ranging from 25% to 135%. This suggests that if Ethereum manages to break above the 50-week EMA, it could target the $4,000 range.

The EMA is a trend-following indicator that places more weight on recent price action, often used to identify potential breakout or breakdown zones in asset movements. This technical resistance, combined with broader market consolidation, has contributed to Ethereum's recent price stagnation.

Despite the price challenges, Ethereum’s staking metrics continue to show steady growth. On-chain analyst OnChainSchool reported that more than 500,000 ETH were staked in the first half of June, bringing the total staked to over 35 million ETH. This milestone represents the highest amount ever locked in Ethereum’s proof-of-stake contract and reflects a growing trend toward network participation and supply reduction.

Staking in Ethereum involves locking ETH to help secure the network and validate transactions in return for staking rewards. As the amount of ETH staked rises, the liquid circulating supply shrinks, potentially tightening available supply on exchanges. Additionally, accumulation wallets, or addresses with no history of selling, have also reached an all-time high, now holding 22.8 million ETH. These metrics point toward long-term holding behavior, rather than speculative trading.

These on-chain developments coincide with ongoing interest in Ethereum-based financial products. The Ethereum ecosystem has seen renewed institutional and retail engagement, particularly after the US Securities and Exchange Commission approved the first spot ETH ETFs. Just recently, SharpLink Gaming, a Nasdaq-listed firm and a marketing partner to sportsbooks and online casino gaming operators, unveiled a $425M Ethereum reserve strategy led by ConsenSys.