Looking at the chart above, Ethereum’s total staked value stood at 34.3 million ETH on October 20, when the price reached a monthly peak of $2,762. However, as prices began to decline over the last four days, a majority of network participants chose to ride out the correction phase by staking more coins.

As of October 24, the total staked value has increased to 34.4 million ETH. This implies that over the past four days, Ethereum investors deposited an additional 82,724 ETH, worth approximately $208 million.

When investors increase staking during a price correction, it signals two critical factors.

First, it shows that the largest ETH stakeholders maintain confidence in Ethereum’s long-term price prospects. Hence, rather than sell during ongoing market dip, the have opted to stake their holdings and earn passive income, mitigating short-term losses as they await the future gains.

Most importantly, these staking inflows temporarily reduce ETH short-term supply available for trading. This reduction in sell-side pressure increases the likelihood of Ethereum avoiding a major breakdown below $2,500 in the near-term.

ETH Price Forecast: Bulls to Hold $2,500 Support Line

As of Oct 24, Ethereum price has declined 9.5% in the last 4-days. However, the positive sentiment observed across rival Layer-1 markets, and the $204 million staking inflows recorded amid this correction phase suggest ETH is unlikely to breakdown below the $2,500 psychological support level.

Affirming this optimistic price forecast, the Bollinger bands and Parabolic SAR technical indicator emphasize that a rebound towards $2,600 could be on the cards.