Ethereum’s price has faced steady downward pressure recently, but staking activity is on the rise.

Data on the blockchain indicates a surge in the amount of ETH being locked in staking contracts, despite the struggles of the altcoin to climb back up.

Staking activity for ETH has seen a significant increase, with 33.98 million ETH presently locked in staking contracts, marking a 1% uptick in the past month.

This surge comes at a time when ETH has experienced a 30% drop since hitting a year-to-date low on February 16, currently trading at $1,897.

The rise in staked ETH suggests that many investors view the coin as a long-term investment rather than a short-term trade. By staking their coins, they are showing confidence in the future price performance of ETH amid recent challenges.

The increasing amount of staked ETH may also indicate a rising interest from both institutional and retail investors in passive yield, despite lackluster short-term price movements.

However, the growing staked ETH stands in contrast to the recent outflows in spot ETH exchange-traded funds (ETFs), which have seen withdrawals totaling $524.68 million over the past three weeks.

When ETFs experience net outflows, it signals a bearish sentiment towards the coin, putting additional downward pressure on its price.

Currently trading at $1,897 and breaking below the crucial support level of $1,924, ETH is showing negative readings from its Balance of Power (BoP), indicating increased selling activity among ETH holders.

With the BoP below zero at -0.27, sellers are dominating the price action, suggesting a potential further decline towards $1,758.

Should sentiment shift towards a bullish outlook, ETH could rise above the $1,924 resistance level and potentially reach $2,224.