The percentage of Ethereum (ETH) supply staked on the network has dropped to 27.6%, a level last seen in July 2024. This decline has raised questions about Ethereum’s long-term appeal among investors and whether staking remains a preferred option.

Staked Ethereum Percentage Drops From November Peak

According to data from Dune Analytics, the proportion of ETH staked on the network has declined to 27.6%, a pullback from its peak of 29% recorded in November 2024. At press time, a total of 33.5 million ETH is staked on the Ethereum network.

Ethereum staking was introduced alongside the launch of the Beacon Chain in December 2020, enabling investors to earn rewards while securing the network. Over time, ETH staking has gained traction, with major cryptocurrency exchanges such as Binance, Kraken, and others offering staking services to their users.

Additionally, staking led to the rise of a new market vertical known as liquid staking derivatives (LSDs). Currently, the LSD market is dominated by Lido (LDO), which commands nearly 69% of the total market share. Binance Staking follows, holding approximately 15% of the LSD sector. 

However, since Donald Trump’s victory in the November 2024 US presidential election, the regulatory landscape has shifted, creating an environment that may encourage the entry of new staking protocols, intensifying competition in the LSD space.

That said, there are concerns about the high concentration of the LSD market commanded by Lido, which is likely to rise even more if the ETH staking percentage continues to dwindle. A single LSD protocol having so much influence on the staking ecosystem could run against Ethereum’s decentralization ethos.

Is ETH Losing Its Charm?

Despite being the second-largest digital asset with a market capitalization exceeding $327 billion, Ethereum appears to be losing favor among large investors who may be seeking better returns in alternative blockchain ecosystems.

For instance, data from DeFiLlama shows that the total value locked (TVL) in Solana’s (SOL) decentralized finance (DeFi) ecosystem surged from approximately $4.5 billion in September 2024 to as high as $11.3 billion in January 2025. This rapid growth was largely fuelled by the memecoin frenzy that took over the Solana ecosystem throughout 2024.

Meanwhile, Google Trends data indicates a notable decline in Ethereum-related search interest, dropping from 87 in November 2024 to 41 at the time of writing. This trend suggests that ETH may be losing traction, particularly when compared to competitors such as SOL, SUI, and XRP, which have experienced more dynamic price movements over the past year.

Recent on-chain data also suggests that ETH may be falling out of favour among crypto ‘whales.’ At press time, ETH trades at $2,712, up 2.8% in the past 24 hours.

Featured Image from Unsplash.com, Charts from Google Trends and TradingView.com

Ethereum’s price fluctuations may be nearing its end in the short term, indicating a potential start of the much-anticipated major upward move to a new all-time high. Its upside capability to new highs is further supported by bullish indicators and key patterns cited on its chart.

A Rally Incoming For Ethereum Shortly?

In light of waning performance, seasoned technical analyst and trader Titan of Crypto has outlined a promising trend for Ethereum in the short term. The expert’s analysis shows that ETH’s price action remains strong citing a bullish chart pattern, particularly the Symmetrical Triangle formation.

According to Titan of Crypto, the symmetrical triangle pattern is still in play despite fluctuations in the broader crypto market. ETH’s maintenance of the chart formation suggests the possibility of further upside growth shortly.

Presently, the altcoin is sustaining above key support levels like the $2,600 mark as the triangle formation points to a continuation of its renewed momentum. Since such patterns have preceded huge rallies, investors and traders are watching the development closely and how it may impact ETH’s next price trajectory.

Titan of Crypto previously underlined the altcoin’s ability to surge soon, highlighting that Ethereum’s most hated rally is on the horizon. His forecast is based on the heightened sentiment and weak investors’ confidence in ETH, which is currently at its peak FUD. However, once the negative sentiment wears off, he believes that the asset’s “comeback will be legendary.”

Why ETH Remains A Promising Asset

As FUD grows in the market, Titan of Crypto has reminded investors of several crucial factors that solidify Ethereum as a leading asset in order not to be swayed by the noise. One of the factors presented by the expert is that ETH was the first blockchain to successfully introduce smart contracts into the mainstream. Its inception ultimately paved the way for other sectors such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and more.

Another factor is that ETH continues to foster innovation while holding its position as one of the biggest and most active developer communities in the crypto landscape. Lastly, Titan of Crypto pointed to the Merge protocol, which marked a historic shift to Proof-of-Stake by decreasing energy usage by about 99.95%.

Just as the blockchain boasts notable features, it also undergoes challenging aspects. Despite these promising advancements, ETH still faces setbacks like scaling, gas fees, and competition. This implies that Ethereum is not perfect, rather, it is evolving along with the changing market dynamics.

At the time of writing, Ethereum’s price was trading at $2,701, displaying a nearly 1% UPswing in the last 24 hours. Investors’ sentiment has drifted toward a negative area as shown by a more than 33% decline in trading volume in the past day.

Featured image from Unsplash, chart from Tradingview.com

Ethereum has been struggling below the $2,800 mark for weeks, unable to reclaim it as support and spark a recovery rally. This critical resistance level has kept bulls at bay, leaving the price action stagnant and fueling negative sentiment in the market. Analysts call for a bearish continuation, citing Ethereum’s inability to break through key supply zones. The broader market uncertainty and the persistent selling pressure have only added to concerns, making investors increasingly cautious about Ethereum’s short-term prospects.

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However, not everyone is bearish. Some investors remain optimistic that Ethereum could soon enter a recovery phase. Top analyst Ali Martinez recently shared a technical analysis revealing that Ethereum might be showing signs of a potential rebound. Martinez noted that the TD Sequential indicator—a widely used tool for identifying potential trend reversals—has flashed a buy signal on the weekly chart. This indicator, known for its accuracy in pinpointing moments of trend exhaustion, suggests that Ethereum could be nearing a turning point.

As Ethereum consolidates at current levels, the coming weeks will be crucial in determining its next move. Will the buy signal lead to a rally, or will bearish sentiment dominate? For now, all eyes are on the $2,800 mark and whether Ethereum can reclaim it.

Ethereum Prepares For A Rebound

After last week’s dramatic sell-off, Ethereum plummeted from $3,150 to $2,150 in less than two days, shaking the confidence of investors and leaving the market in turmoil. Although the price has since recovered strongly, climbing back into the $2,600–$2,700 range, Ethereum has struggled to reclaim key supply levels, keeping bearish sentiment alive. The road to recovery remains challenging, with ETH needing to break above the $3,000 mark to signal a reversal of the current bearish trend.

Top analyst Ali Martinez has provided some hope for Ethereum bulls, sharing positive data on X that suggests a potential rebound may be on the horizon. According to Martinez’s technical analysis, Ethereum is showing signs of recovery as the TD Sequential indicator flashes a buy signal on the weekly chart.

The TD Sequential, a well-respected tool in technical analysis, is specifically designed to identify moments of trend exhaustion and signal potential price reversals. A buy signal on the weekly chart is a particularly strong indicator, suggesting that ETH could be nearing a critical turning point.

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If Ethereum manages to step above the $3,000 mark and reclaim it as support, it would confirm a trend reversal and could spark a rally into higher price levels. However, until this key level is breached, uncertainty remains, and bearish pressure could still dominate. For now, the market is watching closely to see if Ethereum can capitalize on these positive signals and regain its footing. The coming weeks will be crucial in determining whether ETH can shake off its bearish trend and resume a path toward recovery.

ETH Price Testing Crucial Supply

Ethereum is currently trading at $2,695, consolidating after days of ranging between $2,525 and $2,795. The market remains indecisive, with both bulls and bears waiting for a breakout in either direction. Bulls face the critical challenge of reclaiming the $2,800 level as support to gain momentum and push the price toward $3,000. A move above $3,000 would confirm a recovery rally and potentially mark the beginning of a bullish phase for Ethereum.

However, the current price levels are crucial to maintaining a recovery phase. Sustaining the $2,600 support level is essential for bulls to build confidence and attract more buying pressure. Losing this level could disrupt the recovery momentum and spark a deeper correction, pushing ETH into lower demand zones that could see it retest levels below $2,500.

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The next few days will be pivotal for Ethereum’s short-term direction as it continues to hover near key levels. If bulls succeed in reclaiming $2,800 and pushing above $3,000, it could attract renewed interest from buyers and fuel a rally into higher supply zones. Conversely, failure to hold current levels could give bears the upper hand, leading to increased selling pressure and further price declines. For now, Ethereum remains in a critical consolidation phase.

Featured image from Dall-E, chart from TradingView