Original text source: Dou Shark.

Due to significant capital inflow into the Global altcoin market, the price of Ethereum (ETH) increased by 4% in the past three days, reaching the milestone of $2,720 on February 11. However, the outflow of on-chain staking funds suggests that ETH's recovery may fade sooner than expected.

After consolidating over the weekend, Ethereum reclaimed the resistance level of $2,700.

Ethereum (ETH) experienced a strong rebound, rising 4% over the last three days and breaking through the resistance level of $2,720 on February 11. Although Bitcoin (BTC) and Ethereum remained relatively stable over the weekend, the recent surge occurred against the backdrop of broader capital inflow into the altcoin market.

Notably, other major altcoins such as Litecoin (LTC), Solana (SOL), and XRP have all surged significantly, altering investor sentiment and paving the way for Ethereum's bullish momentum. The TradingView chart below shows that the price of ETH soared from $2,560 on Monday to a local high of $2,725, representing a 3.7% increase within 48 hours.

This upward trend also marks the fourth consecutive day that Ethereum has not decreased, which is a significant psychological milestone for market participants.

However, despite the seemingly bullish trend in ETH prices, the decline in volume indicates that the upward momentum may be losing steam. Without substantial demand and follow-up buying pressure, ETH may struggle to break through the next resistance zone, potentially leading to a reversal or consolidation period.

Investors withdrew 200,000 ETH from the Ethereum 2.0 staking contract, creating false signals.

Although Ethereum has shown resilience over the past four days, on-chain staking data has raised concerns about the sustainability of further increases. The following chart tracks the daily changes in the total balance of ETH deposited in the Ethereum 2.0 Beacon Chain staking and network validation contracts.

As of February 4, Ethereum staking deposits amount to 33.7 million ETH. However, in the past seven days, investors have withdrawn over 0.2 million ETH, bringing the total staking balance down to 33.5 million as of February 11. At current prices, these outflows are worth approximately $0.54 billion, potentially having a bearish impact on the price trend of ETH.

Firstly, a large influx of unstaked ETH will increase market supply, which may weaken bullish momentum, making it difficult for ETH to maintain price increases. Recent large-scale sell-offs of withdrawn funds may exert downward pressure on the price of ETH, limiting its ability to break through key resistance levels.

Additionally, the ability to withdraw staked assets can be interpreted as a signal of declining confidence among major stakeholders and network validators. For a Proof of Stake (POS) network like Ethereum, a decrease in staking participation may negatively impact network security and efficiency, further reinforcing a cautious market outlook.

In light of these bearish signals, Ethereum's 3.7% increase may only be an illusion, not the beginning of a sustained bullish trend. If ETH fails to maintain above $2,700,Support.If the trading volume remains sluggish, a pullback to $2,560 or even $2,500 at lower Resistance levels may be imminent. Conversely, with strong trading volume support, a breakout above $2,750 could invalidate the Bearish outlook and pave the way for further increases.

Ethereum price prediction: If this key Resistance level collapses, ETH could drop to $2,400.

The Ethereum price prediction chart shows an unstable balance between Bullish recovery and Bearish continuation. ETH is currently trading at $2,703, having recovered the psychological level of $2,700 after a moderate rebound of 3.7%.

However, the decline in trading volume and the persistent Bearish market structure suggest potential downside risks. The Volume increment Indicators reflect a weakening Bid momentum, with recent green Volume failing to match the intensity of previous selling pressure. This indicates that the current relief rally lacks the confidence needed to break higher Resistance levels.

The Bollinger Bands show that ETH is still near the lower limit of $2,436, further confirming the view that despite recent rebounds, the price trend remains weak. VWAP is $2,696, very close to the current price, indicating a temporary stabilization, but still below the midline of the Bollinger Bands, which means ETH has not yet regained a Bullish trend. If the bears regain control, a drop below $2,660 could trigger a sell-off towards $2,400, where the lower Bollinger Band is located. Conversely, a breakout above $2,725 could pave the way for a Resistance level at $2,972.