Is This a Bullish Sign?
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Ethereum has achieved a significant milestone, with over 28% of its total supply now staked, as observed by crypto researcher Leon Waidmann. In an update on X, Waidmann highlighted that ETH staking is at an unprecedented level, with only 10% of Ethereum currently held on crypto exchanges. This record confirms the growing confidence in Ethereum’s future and the community’s dedication to securing the network through staking. Decline in Exchange Holdings The drastic reduction in Ethereum held on exchanges, as seen in the chart below, has drawn attention. The percentage has fallen to approximately 10%, marking a significant decrease from previous levels. Notably, this trend highlights a movement towards staking and long-term holding, reducing the available supply for trading. Ethereum on Exchanges | CryptoQuant Since last year, the reserve of Ethereum on exchanges has dropped from around 20 million to 17 million. This decline in reserves coincides with price fluctuations, including a notable increase from early 2024. The trend suggests that as ETH leaves exchanges, possibly for private wallets or staking, the price tends to rise, reflecting increased investor confidence and long-term holding. Moreover, market data from CryptoQuant depicts a steady uptrend in the amount of ETH tokens going into staking contracts over the past year. Currently, over 33.9 million tokens are locked, valued at over $111 billion. Ethereum Staked | CryptoQuant Emphatically, the combination of reduced supply on exchanges and increased staking rates suggests a significant supply squeeze, which could impact Ethereum’s price dynamics. Further, as the supply on exchanges dwindles and more ETH is locked up in staking, the buying pressure is likely to drive prices higher, pointing towards a significant upcoming price surge, as suggested by Waidmann. Technical Indicators Point to Bullish Outlook Technical indicators like the RSI, which currently stands at 56.92, highlight bullish trends, further supporting a…
Filed under: News - @ July 31, 2024 6:46 am