As a seasoned analyst with over two decades of experience in the financial markets, I find the current Ethereum scenario quite intriguing. The fact that ETH is outperforming Bitcoin at spot rates and holding firm above the support zone between $3,000 and $3,300 is a testament to its growing strength and resilience.
As an analyst, I’m observing that Ethereum is surpassing Bitcoin in current market rates and maintaining its position above the support range, which is between $3,000 and $3,300. Yesterday, we saw a price correction, with the July 29 bar closing showing a long upper wick, indicating some weakness. However, Ethereum holders remain optimistic, anticipating further growth beyond the $4,000 mark.
Roughly 30% Of All ETH Staked, Validators Stand At Over 1 Million
With Ethereum holding firm against further price drops and maintaining its position as the second-largest cryptocurrency by market capitalization, potential upcoming events may ignite increased demand.
Speaking with analyst Leon Waidmann, it was pointed out that a remarkable 28% of all Ethereum in circulation is currently locked, marking an all-time high. Based on CryptoQuant data, this amounts to approximately 33.3 million Ethereum being secured as of July 29th.
Information from Beaconcha.in indicates that more than a million validators are active. Concurrently, approximately 33.6 million Ether have been staked. It’s also worth noting that the average amount of Ether (approx. 32.06) has been locked by each operational node among these validators, contributing to transaction security and processing.
Holders Pulling ETH From Exchanges, Demand From Spot Ethereum ETF Issuers
As Ethereum staking increases, it’s observed simultaneously that holders are withdrawing more coins from major exchanges. By July 30, CryptoQuant data indicates that these exchanges only held approximately 16.6 million ETH, which is a significant decrease from the 32.5 million they managed three years prior in July 2021.
Generally speaking, when Ethereum (ETH) is withdrawn from exchanges, it often indicates that holders have a high level of confidence in the cryptocurrency. Users can effortlessly exchange their ETH for other assets such as Bitcoin or stablecoins on platforms like Binance and Coinbase. This action may suggest that they intend to keep their coins or participate in activities within other ecosystems, such as decentralized finance (DeFi), using services like Maker, or even staking for an annual return.
The act of Ethereum (ETH) being withdrawn from exchanges and users deciding to store it instead of staking, makes the coin less available. Furthermore, the introduction of U.S.-based Ethereum spot Exchange Traded Funds (ETFs) could boost ETH demand. Consequently, as scarcity increases due to reduced supply, the demand from this financial product might drive up prices.
Based on the daily graph, Ethereum (ETH) has encountered resistance at approximately $3,500. Should it receive support within the range of $3,000 to $3,300, Ethereum might possibly trend upward.
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2024-07-30 22:34