Ethereum (ETH) has experienced a remarkable price increase this November, rising by 34% and reaching a high of $3500, the first time it has touched this level since July 2024. This upswing follows months of fluctuating prices and a period of Ethereum staking withdrawals that have recently turned into record-breaking inflows.

The surge in ETH’s price is not only tied to broader market movements but also to growing interest in staking, which has seen a major shift. After months of outflows, Ethereum staking experienced a significant inflow, with a record netflow of +10,000 ETH in the past week alone. As Ethereum continues to rise in value, many investors are closely watching these developments to understand the potential long-term effects on ETH’s price and its overall ecosystem.

Ethereum Staking Sees Major Upswing

Ethereum staking has been a key focal point this November, with a sharp rise in deposits. Data from IntoTheBlock revealed that Ethereum’s staking network recorded a remarkable netflow of +10,000 ETH in just one week. A total of 115,000 ETH was deposited, while 105,000 ETH was withdrawn. This substantial inflow marks a significant shift from the previous months, which saw more ETH withdrawn than deposited.

The influx of Ethereum into staking has been attributed to multiple factors. First, the price surge itself has encouraged more users to lock their ETH into the network, seeing it as an opportunity to earn rewards while contributing to the network’s security. Additionally, improvements in Ethereum’s staking infrastructure have made the process more accessible and appealing to a wider range of investors.

This surge in staking deposits is not just a temporary trend; it plays a crucial role in reducing the available supply of ETH in the market. With fewer tokens available for trading, this reduction in supply, combined with rising demand, creates a favorable environment for price appreciation. Ethereum’s stock-to-flow ratio, a key measure of scarcity, is also rising, further suggesting that ETH is becoming a scarcer asset, which historically contributes to an increase in value.

The Effect on ETH’s Price

The recent uptick in staking and the subsequent reduction in circulating supply have already begun to show their impact on ETH’s price. As of writing, Ethereum is trading at $3381, reflecting a 7.82% increase over the past week. This positive price action follows the sharp rise from a low of $3031 to a high of $3500.

The increased demand for ETH, combined with a decrease in available supply, has helped fuel this upward momentum. If this trend continues and buying pressure remains strong, Ethereum could see additional gains. The next major price target for ETH is the $3560 resistance level. If Ethereum can break through this barrier, it could open the door for further price advances, potentially pushing toward new highs.

Large Holders Fueling Ethereum’s Growth

Ethereum’s recent success isn’t just due to small retail investors. Large holders, often referred to as “whales,” have also played a significant role in Ethereum’s rally. According to IntoTheBlock’s analysis, large investors have been making substantial purchases of ETH, contributing to a surge in inflows. This activity suggests that major investors are positioning themselves for further gains, adding to the buying pressure on ETH.

This behavior by large holders signals confidence in Ethereum’s future growth and suggests that more capital is being allocated to the Ethereum ecosystem. With whales accumulating more ETH, there is a reduced supply in the market, which further enhances the asset’s value proposition.

What’s Next for Ethereum?

Looking ahead, Ethereum’s prospects appear strong, driven by increased demand, reduced supply, and improved staking dynamics. The positive impact of staking inflows on Ethereum’s price could continue as more users lock their ETH to participate in the network’s proof-of-stake mechanism.

However, Ethereum’s performance will also depend on broader market trends. Although ETH has shown strong growth, it has struggled to keep pace with Bitcoin (BTC), which has reached new all-time highs multiple times this month. If Bitcoin maintains its bullish momentum, it could continue to attract attention away from altcoins like Ethereum.

Nevertheless, Ethereum’s strong staking inflows, combined with a positive technical outlook, suggest that ETH has a solid foundation for continued growth. If the market continues to favor Ethereum and if buyers remain in control, the cryptocurrency could potentially break the $3560 resistance level and push toward new all-time highs.

Conclusion

November has been a transformative month for Ethereum, with the cryptocurrency seeing a 34% increase in price and record-high staking inflows. This surge in demand, combined with a reduction in available supply, has created a bullish environment for ETH’s future. While resistance levels remain a challenge, Ethereum’s solid fundamentals, including a growing staking ecosystem and continued investor confidence, suggest that the altcoin is well-positioned for future growth.

As Ethereum continues to evolve and adapt to the changing landscape of digital assets, it’s clear that the cryptocurrency is making strides in the right direction. With strong backing from both small and large investors, Ethereum’s potential for long-term growth remains high.