Market Overview
The cryptocurrency market has seen a slight decline, with the total market capitalization falling by over 1% in the last 24 hours to approximately $2.31 trillion. This decline approaches the lows observed last week but remains 5% above the low point recorded on February 6. The market's range is narrowing, indicating a potential breakout in volatility from the current $2.3-2.4 trillion range.
Ethereum's Position
Ethereum is currently resting on a significant support line that dates back to 2020, which was also touched in early 2024 and at the lows in February. This trend line aligns with the $2,000 price level, reinforcing its importance. A critical point to watch is the potential breakdown of this 6-year support, which would require confirmation through a failure below recent lows at $1,500. Until such a breakdown occurs, bullish sentiment may persist, attracting long-term buyers during dips.
Bitcoin and Market Dynamics
Bitcoin is trading just above $67,000, experiencing a slight decline of under 1%. This performance is relatively better than the broader market, as selling pressure has shifted towards altcoins outside the top five. Bitcoin is currently at the lower end of its recent trading range.
Recent data indicates that Bitcoin inflows from large holders to the Binance exchange have reached record levels, suggesting increased selling pressure from significant players. Analysts suggest that the current state of the crypto market mirrors the final stage of the 2022 bear market, which was followed by a prolonged consolidation phase.
Ethereum Staking and Institutional Interest
For the first time in history, Ethereum's share of staking has exceeded 50% of its total supply, with a queue of 3.8 million ETH waiting for staking, resulting in a waiting time of approximately 67 days. Additionally, BlackRock has initiated steps towards launching a staking Ethereum ETF in the United States, indicating growing institutional interest.
In a notable development, the Founders Fund, led by billionaire investor Peter Thiel, has divested all its shares in ETHZilla, a major corporate holder of Ethereum, which previously accounted for 7.5% of the fund's holdings.
Regulatory Changes Impacting Investors
New regulations from the US Internal Revenue Service (IRS) are causing concern among American crypto investors. Starting in 2026, all US-licensed crypto exchanges will be mandated to disclose detailed information about their clients, including investment volumes and profits or losses, which may impact trading behaviors.