Ethereum’s price has remained under significant pressure over the past month, yet staking activity has surged. 

On-chain data shows a notable increase in the amount of ETH locked in staking contracts, even as the altcoin struggles to regain upward momentum.

ETH Staking Grows While ETF Outflows Hit $524 Million

Since plummeting to its year-to-date low on February 16, the amount of staked ETH has risen. With 33.98 million ETH currently locked in staking contracts, this figure has gone up by 1% over the past month. 

This has happened despite the significant drop in ETH’s value in the past 30 days. Trading at $1,897 at press time, ETH’s price has plummeted by 30% since February 16. 

The divergence suggests that many investors continue to see the coin as a long-term asset rather than a short-term trading opportunity. They demonstrate confidence in ETH’s future price performance by locking up their coins instead of selling amid recent headwinds. 

Moreover, this increased staked ETH could indicate growing institutional and retail interest in passive yield, even as short-term price action remains unimpressive.

However, this bullish stance contrasts with the recent decline in spot ETH exchange-traded fund (ETF) inflows, raising questions about broader market sentiment. Data from SosoValue shows that these funds have recorded outflows totaling $524.68 million in the past three weeks. 

When ETH ETFs see net outflows like this, investors are withdrawing more funds than they are putting in. This indicates a bearish sentiment toward the coin and puts more downward pressure on its price.

Ethereum’s Eyes Deeper Pullback—Or a Bullish Reversal?

ETH trades at $1,897 at press time, breaking below the key support formed at $1,924. The negative readings from its Balance of Power (BoP) reflect the ongoing selling activity among ETH holders. 

As of this writing, this indicator, which compares the strength of the bulls against the bears, is below zero at -0.27. When an asset’s BoP is negative, its sellers exert more control over price action, confirming the downward pressure on price.

If this trend persists, ETH could continue its decline to trade at $1,758.

On the other hand, if sentiment flips and becomes fully bullish, it could drive ETH’s price above the $1,924 resistance and toward $2,224.

Hedera (HBAR) has been experiencing a continued downtrend in price despite the broader market showing a bullish macro outlook. However, the short-term market conditions indicate that HBAR could face further declines in the coming days. 

This potential drop to critical support levels could pose risks for traders, especially if they fail to manage their positions effectively.

HBAR Is Facing Uncertainity

The Ichimoku Cloud indicator is currently presenting a bearish outlook for HBAR. The cloud itself is signaling downward momentum, and the presence of candlesticks below the basis line confirms this negative sentiment. This indicates that the market sentiment is leaning toward the bearish side, and any hope for a bullish reversal seems distant at the moment.

Furthermore, the expanding Ichimoku Cloud suggests that the bearish pressure on HBAR is likely to intensify. As the cloud widens, it indicates that downward momentum could continue in the short term.

In terms of macro momentum, the liquidation map shows a concerning scenario if HBAR continues its downward trend. If the price falls to its critical support level of $0.177, it could trigger $13.3 million worth of long liquidations. This liquidation could impact market sentiment and cause traders to retreat, fearing further losses.

The resulting liquidation could further pressure HBAR’s price, accelerating the decline and creating more bearish sentiment in the market. As traders pull back, it could exacerbate the existing downtrend, leading to a cycle of selling and additional losses.

HBAR Price Is Looking For A Breakout

HBAR is currently trading at $0.195, within a descending channel. The altcoin is trying to secure this level of support, but the current market conditions do not offer much hope for a bullish outcome. The factors discussed, including the bearish Ichimoku Cloud and the potential for liquidation, suggest that a recovery is unlikely in the near term.

Given the ongoing market conditions, HBAR is vulnerable to losing $0.195 support. If this happens, the price could fall to $0.177, which has been a critical support level for HBAR over the past weeks. If the price breaks below this level, it signals a continuation of the bearish trend and a breakdown of the pattern, resulting in further price declines.

However, if HBAR manages to bounce off the $0.195 support level, it could potentially rise to $0.222, breaking out of the current pattern. This would completely invalidate the bearish outlook and help investors note recovery.

The Crypto Fear and Greed Index rebounded from its recent lows, showing diminished concerns of a bear market. However, several crypto stocks have posted huge losses, and gold is surging towards an all-time high.

The constant market volatility has helped exhaust short-term and speculative traders, rebuilding a little stability. The latest US CPI report was better than expected, and it may help create interest rate cuts for a more long-term solution.

Have We Avoided a Crypto Bear Market?

Over the past few weeks, rumors of a bear market have circulated through the crypto space. Two weeks ago, the Crypto Fear and Greed Index reached its lowest level since the FTX collapse, and recession fears have kept markets reeling.

However, the Index now reports a significant rebound, and crypto traders are evidently regaining some confidence.

The pertinent question, then, is why has this happened. By all accounts, crypto investors have a lot of reasons to fear a bear market.

Several private firms that maintain significant Bitcoin holdings, like Metaplanet, MicroStrategy, and Marathon, all recorded double-digit percentage drops in their stock value this week.

Meanwhile, traditional assets like gold are spiking.

Gold is a risk-off asset, and cryptoassets are generally considered risk-on. If fears of an imminent recession define the TradFi market, this will have a negative impact on investments in the crypto space.

However, a few points could diminish fears of a crypto bear market. For one, the US CPI report for February was less bad than expected, which may help fuel future cuts to US interest rates.

Since the report dropped, Bitcoin and other cryptoassets recovered a little, and some corporate BTC holders like Tesla also posted a slight rebound. This optimism may or may not prove fragile, but it’s helped keep the market upright.

More importantly, the constant volatility in this market might be causing some benefits. As President Trump repeatedly flip-flopped on tariffs, crypto sentiment has yo-yoed between bear market fears and resurgent optimism.

This has exhausted most of the short-term and speculative traders in this market, at least for the time being.

In short, all capital markets are in chaos right now. Parts of the crypto market are showing cautious optimism, but all the ingredients of a bear market are still in play.

The industry has been agitating for interest rate cuts, but it may face serious hurdles. Ultimately, we’ll need a major bullish development to dispel these lingering market fears.