Ethereum (ETH) surged over the weekend, adding $9 billion to its market capitalization and bringing the world's second-largest cryptocurrency to within 33% of its all-time high (ATH). The rally, which occurred amid broader crypto market optimism, has reignited bullish sentiment among traders and investors.
The momentum is attributed to several key factors, including renewed interest in decentralized finance (DeFi) and Ethereum-based layer-2 networks, which have seen spikes in activity and Total Value Locked (TVL). Whale accumulation and a general market recovery are also cited as contributors. Analysts are closely watching to see if ETH can maintain its momentum to test resistance levels not seen since late 2021, though they caution that market volatility and macroeconomic risks remain.
Concurrently, on-chain data reveals a tightening supply narrative. Staked ETH has reached a record high of approximately 36 million tokens, representing roughly 30% of the circulating supply. The deposit contract balance is reported at about 77.85 million ETH, or 46.6% of the total supply. Furthermore, the validator entry queue has swelled to a historic 2.5 million, while the exit queue is near zero, indicating strong long-term conviction and reduced immediate sell pressure from validators.
Network activity is also picking up, with the 7-day moving average of new Ethereum addresses climbing sharply into January 2026, at times reaching up to 400,000 addresses per day. Despite these bullish fundamentals, the ETH price has recently dipped, consolidating between $3,150 and $3,300. Analysts suggest this compression in volatility could set the stage for a larger breakout, potentially pushing the price toward the $3,500 level.
