Ethereum

ETH 2.0

Beacon

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum’s supply is decreasing as more coins get locked in anticipation of the ETF launch.</li>
 <li>Increased outflow of Ethereum from exchanges suggests a potential price increase.</li>
</ul>
<h2 id="anticipation-builds-ahead-of-ethereum-etf-launch">Anticipation Builds Ahead of Ethereum ETF Launch</h2>
Ahead of the Ethereum ETF launch, the sentiment seems optimistic. 40% of Ethereum’s total supply is now locked, indicating a bullish trend.
On July 11th, an unidentified market participant transferred 6,400 Ethereum to the Beacon depositor wallet. The Beacon Chain is tasked with validating new blocks on the Ethereum network.
Sending coins to this wallet suggests that holders prefer to lock their supply rather than trade them. This action could decrease selling pressure and potentially prevent Ethereum from falling below $3,000.
<h2 id="decreasing-ethereum-supply">Decreasing Ethereum Supply</h2>
In addition to the above, Glassnode reports that ETH 2.0 New Deposits are on the rise. An increase in this metric implies that altcoin holders are stashing away at least 32 Ethereum in hopes of rewards.
This trend coincides with the upcoming spot Ethereum ETF launch. The decrease in circulation indicates that the Ethereum community is bullish about this event.
If more Ethereum gets locked, the cryptocurrency’s price could rise. Currently, 40% of the total Ethereum supply is locked, with 28% staked and 12% bridged via smart contracts.
For the price to rise, however, the number of coins on exchanges must decrease. To determine whether this was happening, Ethereum’s exchange inflow and outflow were evaluated.
Exchange inflow monitors the amount of cryptocurrency sent to an exchange from external sources. Exchange outflow, conversely, tracks the number of Ethereum withdrawn.
If the inflow exceeds the outflow, the price could correct. However, an increase in outflow could indicate a potential price increase.
According to Santiment, Ethereum’s exchange inflow was 26,500, while the outflow was 37,500. Given this disparity, there’s a high likelihood that Ethereum’s price might surge in the days or weeks following the start of official ETF trading.
<h2 id="ethereum-rally-expected">Ethereum Rally Expected</h2>
Benjamin Cowen, founder of Into The Cryptoverse, commented on the potential price action. Cowen predicts that Ethereum might start outperforming Bitcoin by the fourth quarter of the year.
In the meantime, data from IntoTheBlock suggests that Ethereum might start performing well even sooner. This is due to the current state of the Bulls and Bears indicator.
Bulls are those who bought about 1% of the total trading volume, while Bears are those who sold the same ratio of the volume. At the time of writing, Bulls were dominating Bears in Ethereum, indicating increased buying pressure. If this trend continues, Ethereum’s price could revisit $3,300 and potentially approach $3,500.

The Significance of 6400 ETH Secured in Beacon Chain by Ethereum Holders

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CoinEagle.com

Alte articole publicate pe 12 iul. 2024

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