Ethereum

bullish

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Ether’s (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) price had dropped 7% since being rejected from the $3,400 mark last week, falling to key support levels. Data suggested that increased staking demand, coupled with renewed ETF inflows and strong technical support, may lead to a sustained recovery.&nbsp;Key takeaways:<ul><li>Ether queued for staking goes parabolic, with a 44-day wait time</li><li>Institutional demand for ETH is recovering along with ETF inflows.</li><li>ETH bulls must defend the support at $3,100 to set the stage for sustained gains.</li></ul><h2 id="ether-s-staking-demand-soars-to-30-month-highs">Ether’s staking demand soars to 30-month highs</h2>Ether’s entry queue has surpassed 2.6 million ETH worth $8.3 billion at current rates, with a 44-day wait time.This marks the highest amount of Ether set for staking by the network’s <a href="https://cointelegraph.com/explained/what-is-a-blockchain-validator" rel="noopener noreferrer nofollow">validators</a> since July 2023.Related: <a href="https://cointelegraph.com/explained/why-ethereum-s-walkaway-test-and-quantum-readiness-matter-more-than-ever" rel="noopener noreferrer nofollow">Why Ethereum’s ‘walkaway test’ and quantum readiness matter more than ever</a>Data from ValidatorQueue <a href="https://www.validatorqueue.com/" rel="noopener noreferrer nofollow">notes</a> that the current number of active validators is 978,657, with 29.76% of the total ETH supply staked, around 36.1 million ETH.&nbsp;“Ether’s entry queue is at the highest level in 2.5 years,” <a href="https://x.com/TedPillows/status/2012480266728849706" rel="noopener noreferrer nofollow">said</a> analyst Ted Pillows in a post on Sunday, adding:<blockquote> “Insane demand for staking ETH.”
</blockquote><figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019bd5ea-7ed8-79d8-91d8-eea307153b10.png" title="" alt="Three reasons Ether price remains bullish above $3,000"><figcaption>ETH validator queue. Source: ValidatorQueue.com</figcaption></figure>The massive staking inflows are strengthening ETH’s supply-demand dynamics, potentially setting the stage for upward price momentum this year.Meanwhile, the Ether’s <a href="https://cointelegraph.com/news/ethereum-validator-exit-queue-hits-zero-as-staking-demand-rises" rel="noopener noreferrer nofollow">staking validator exit queue has dropped to zero</a>, signaling a significant drop in selling pressure and boosting confidence in the yield-bearing feature of ETH’s tokenomics.Ether’s validator exit queue has “been completely cleared,” <a href="https://x.com/Langerius/status/2012857504154124749?s=20" rel="noopener noreferrer nofollow">said</a> crypto investor Langerius in an X post on Sunday, adding that it is a bullish signal when people choose to stake ETH instead of selling.Onchain Foundation head of research Leon Waidmann <a href="https://x.com/LeonWaidmann/status/2010709622504509452?s=20" rel="noopener noreferrer nofollow">said</a> the last time the validator exit queue cleared was in July 2025, which was followed by a sharp rally later that summer, with ETH eventually reaching its current <a href="https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume" rel="noopener noreferrer nofollow">all-time high of $4,950</a> on Coinbase on Aug. 24, 2025.<h2 id="ethereum-etf-demand-shows-recovery-signs">Ethereum ETF demand shows recovery signs</h2>Increasing accumulation and buying from <a href="https://cointelegraph.com/news/7-largest-ether-treasury-companies-by-holdings" rel="noopener noreferrer nofollow">Ether treasury companies</a> and <a href="https://cointelegraph.com/explained/ether-etf-inflows-explained-what-they-mean-for-traders" rel="noopener noreferrer nofollow">spot ETH exchange-traded funds</a> (ETFs) provided the demand-side pressure required to keep ETH above $3,000.Data from Capriole Investments shows that collective holdings of strategic reserves and ETFs have jumped by 10% since Nov. 22, 2025, climbing to 12,227,531 ETH from 11,594,738 ETH.&nbsp;The chart below shows that strategic ETH reserve entities and ETFs now hold 9.72%, worth about $40.1 billion, of the total ETH supply.The sharp increase underscores a swift consolidation of Ether into the hands of major institutional and corporate players.<figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019bd5ea-8cd8-7362-a617-b48bcde1099f.png" title="" alt="Three reasons Ether price remains bullish above $3,000"><figcaption>Ether treasuries and ETF holdings reserve. Source: Capriole Investments</figcaption></figure> The majority of these entities have or will stake ETH for additional yields as part of trading strategies, which may have helped expand the entry queue in recent weeks.Tom Lee-chaired BitMine Immersion Technologies, the largest corporate Ether treasury holder, <a href="https://cointelegraph.com/news/bitmine-adds-more-staked-eth-as-entry-queue-soars" rel="noopener noreferrer nofollow">continued to aggressively stake its ETH holdings</a>, adding 186,560 ETH (worth about $625 million at time of publication) to its staking address last week.This brings the total amount staked by the company to 1,530,784 ETH, worth about $5.13 billion at time of publication, or 4% of the total 36 million ETH staked on the Beacon Chain.Meanwhile, <a href="https://cointelegraph.com/news/ethereum-etf-buying-outpaces-new-supply-eth-price-4-5k" rel="noopener noreferrer nofollow">spot Ether ETF buying continues</a>, with these investment products recording inflows every day of last week, totaling $479 million, according to data from SoSoValue.&nbsp;The inflows followed a three-day outflow period, when these Ethereum funds shed a combined $351 million Jan. 7-Jan. 9.<figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019bd5ea-9956-75be-99c2-f4c833da1b6f.png" title="" alt="Three reasons Ether price remains bullish above $3,000"><figcaption>Ethereum ETF flows table. Source: Farside Investors&nbsp;</figcaption></figure><h2 id="the-key-cost-basis-area-is-around-3-100">The key cost basis area is around $3,100</h2>Investors acquired about 3.27 million ETH at an average cost of $3,100 to $3,170, creating a potential support zone, according to Ether’s <a href="https://studio.glassnode.com/dashboards/89d743b2-c238-4679-6b2d-ed6ea231cbf8?a=ETH" rel="noopener noreferrer nofollow">cost basis distribution data</a>.This makes this price level important as it can serve as a potential launchpad for the next leg up.<figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019bd5ea-a4e0-7ebe-84bd-09551d8a51f9.png" title="" alt="Three reasons Ether price remains bullish above $3,000"><figcaption>Ether cost basis distribution chart. Source: Glassnode </figcaption></figure>Analysts say ETH must hold the support at $3,170, coinciding with the 21-day simple moving average (SMA), for the bulls to regain their footing.&nbsp;“21-Day MA is a crucial level to hold onto, and ETH has held that level nicely,” MN Capital founder Michael van de Poppe <a href="https://x.com/CryptoMichNL/status/2011383036483440821" rel="noopener noreferrer nofollow">said</a> in a recent post on X, adding:<blockquote> “Now, it's ready to make new highs and continue the uptrend.”
</blockquote><figure><img src="https://s3.cointelegraph.com/uploads/2026-01/019bd5ea-b033-7242-8a6e-091e0a69d05a.png" title="" alt="Three reasons Ether price remains bullish above $3,000"><figcaption>ETH/USD daily chart. Source: Michael van de Poppe</figcaption></figure>As <a href="https://cointelegraph.com/news/eth-s-next-stop-could-be-dollar4-1k-but-this-must-happen-first" rel="noopener noreferrer nofollow">Cointelegraph reported</a>, holding above the $3,050- $3,170 demand zone is crucial to ETH’s upside prospects and sets the stage for a possible rally above $4,000.

Three reasons Ether price remains bullish above $3,000

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