Ethereum Breaks Descending Channel, Eyes $3,300 Resistance as Institutional Staking Drains Supply
Ethereum (ETH) is trading at $3,142, up 1.6% in the last 24 hours. This is because the second-largest cryptocurrency by market value has
Quick overview
- Ethereum is currently trading at $3,142, showing a 1.6% increase in the last 24 hours due to a breakout from a multi-month declining trend.
- BitMine has crossed the milestone of 1 million staked ETH, significantly contributing to Ethereum's price stability by reducing liquid supply.
- Technical indicators suggest a bullish momentum shift for Ethereum, with a potential price target of $3,909 if resistance at $3,307 is broken.
- The growing supply of stablecoins and positive market sentiment indicate a strong fundamental support for Ethereum's long-term value growth.
Ethereum ETH/USD is trading at $3,142, up 1.6% in the last 24 hours. This is because the second-largest cryptocurrency by market value has shown newfound resilience after breaking out of a multi-month declining trend. The breakout has broken the bearish pattern that has been in place since September. At the same time, institutional conviction through large-scale staking operations is still driving liquid supply out of the market.
BitMine Crosses 1 Million Staked ETH Milestone
BitMine Immersion Technologies’ active staking activity is the most important thing that has helped Ethereum’s present pricing structure. On Saturday, the largest Ethereum treasury corporation by holdings added 86,400 ETH worth $266.3 million. This brought its total staked holdings to 1,080,512 ETH, which is worth around $3.33 billion. BitMine’s staked position earns about $94.4 million a year in ETH rewards at the current yield of 2.81%.
This level of institutional staking shows that people are putting money into things for the long run, not just for the short term. Every staked ETH deposit takes coins out of active circulation, which lowers sell-side liquidity over time. The staking system encourages traders to be patient instead of trading based on price changes, which lets Ethereum absorb supply pressure without causing prices to rise right away. This supply compression generally comes before big price swings when demand drivers come back into the market.
BitMine is still committed, even though the company’s stock price has dropped more than 80% from its all-time high of $161 per share in July 2025 to its current price of $30.06. Chairman Tom Lee has suggested raising the number of authorized shares from 50 million to 50 billion to make room for future stock splits. This shows that he has faith in the approach even though the market is volatile right now.
ETH/USD Technical Breakout Confirmed as Momentum Shifts Bullish
From a technical point of view, Ethereum has clearly broken above its falling channel, setting a higher low at $2,767 and recovering the important $3,090 pivot mark. This stabilization of the structure is a big change from the negative pattern that was in place for most of the last few months of 2025. Price activity has, however, halted at $3,307, where supply keeps limiting attempts to go up. The next significant resistance zone is at $3,909.
The Relative Strength Index (RSI) is currently close to 51, which is a notable break from the previous negative trend. This reading shows that the market is starting to rebound rather than stay stable, and the RSI staying above 50 shows that buyers are regaining control. Even if momentum is getting better, breaking through resistance with more volume is needed to confirm a long-term advance.
Market expert Michaël Van De Poppe said that the ETH-BTC ratio hit its lowest point in April 2025, about 0.017, which is similar to the pattern seen in 2019. In August, the ratio reached a local high of 0.043, but after the market-wide downturn in October, it fell back to its current level of 0.034. This cyclical behavior, together with the fact that people are saying “ETH is dead,” makes it look like the cryptocurrency might be ready for a big surge like it has had in the past.
ETH Derivatives Market Signals Growing Volatility Risk
Funding rates have shot up 66.12% to 0.01275, which means that traders are taking long positions in perpetual futures markets. Traders are now spending a lot of more money to keep their bullish positions, but prices haven’t gone up as much as this leverage has. This difference between derivatives optimism and spot price action makes things very risky, and in the past, it has led to more volatility risk.
Liquidation data shows that bearish positions are under more and more stress. There were $564.78K in short liquidations and only $241.53K in long liquidations. Binance lost $55.03K in short positions, and HTX lost $247.37K in bearish bets. Bears are taking a lot more damage even though prices aren’t moving much, which means the market is slowly developing a stronger base.
The Binance ETH/USDT liquidation heatmap shows that there are a lot of liquidity clusters at $3,050–$3,100 below the current price and $3,150–$3,200 above it. During sessions with little volatility, these zones behave as magnetic levels. If the price breaks higher, there is less resistance because there is less liquidity above $3,225.
Fundamental Catalysts Support Bullish Outlook
Ethereum’s basic ecology is still getting stronger, even though there are technical issues. In 2025, the supply of stablecoins on the network grew by more than 65%, bringing the entire market valuation to over $163.9 billion, which is more than twice what it was at its highest point in 2021. Ethereum handled around $8 trillion in stablecoin transfers in the fourth quarter of 2024 alone. This shows that it is the best place to settle digital dollar transactions.
Tokenized real-world assets and ongoing developer effort also help support long-term value growth. Santiment, a company that analyzes the crypto market, says that Ethereum’s social media sentiment has dropped to levels similar to those seen before its price rise in 2025. This could be a chance to buy when prices are low.
Ethereum Price Prediction: Compressed Spring Ready to Release
Ethereum seems to be forming a controlled base after breaking out of its channel. Technical and on-chain signs suggest that it is more likely to go up than down again. The combination of staking to reduce supply, better momentum indicators, and bearish positioning stress produces the right conditions for growth.
If the price breaks through the $3,307 resistance level, it might start a buying spree that pushes the price up to the $3,909 goal. This could happen quickly enough to test the $4,000 barrier again. On the other hand, if the market doesn’t break through resistance, it could stay in the region of $3,050 to $3,200 as it consolidates its recent gains.
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