The correct reading is βηθανιÌα, Bethany. Not the Bethany of Joh 11:18, but an unknown village. It was not uncommon for two places to have the same name, as the two Bethsaidas, the one on the eastern shore of the Lake of Gennesaret (Mar 6:32, Mar 6:45), and the other on the western shore (Joh 1:44); the two Caesareas, on the Mediterranean (Act 8:40), and in Gaulonitis, at the foot of Lebanon, Caesarea Philippi (Mat 16:13).
Was baptizing (ἦν βαπτιÌζων)
The participle with the substantive verb indicating continued action; was engaged in baptizing.