Ether fell around 7% after being rejected near $3,400 but continues to trade above a key support zone.
Market data suggests ETH could stage a sustained recovery if support around $3,100 remains intact.
Staking demand for Ether has surged, with the entry queue exceeding 2.6 million ETH worth about $8.3 billion.
The current 44-day staking wait time marks the highest level of queued Ether since July 2023.
Validator data shows nearly 30% of the total ETH supply is now staked, totalling roughly 36.1 million ETH.
“Ether’s entry queue is at the highest level in 2.5 years,”
Ted Pillows said.
“Insane demand for staking ETH,”
Ted Pillows said.
The validator exit queue has dropped to zero, signalling reduced selling pressure across the network.
“It is a bullish signal when people choose to stake ETH instead of selling,”
Langerius said.
Leon Waidmann noted that the last time the exit queue cleared, ETH later rallied to new highs.
Institutional demand for Ether is also recovering through renewed exchange-traded fund inflows.
Strategic reserves and ETFs increased their ETH holdings by 10% since late November, according to Capriole Investments.
These entities now control nearly 10% of the total ETH supply, valued at more than $40 billion.
BitMine Immersion Technologies continued staking aggressively, adding more than 186,000 ETH last week.
Spot Ether ETFs recorded daily inflows last week, totalling $479 million after a brief outflow period.
Cost basis data shows strong accumulation between $3,100 and $3,170, forming a key support zone.
Analysts say holding above the 21-day moving average is crucial for maintaining bullish momentum.
“ETH has held that level nicely and is ready to make new highs,” Michael van de Poppe said.
At the time of reporting, Ethereum price was $3,166.41.