Total Deposits in Ethereum 2.0 Staking Contracts Crossed 30 Million ETH
The total value staked in Ethereum 2.0 contracts has reached a milestone of 30 million ETH. This surge in deposits came ahead of the recent Fed Meeting and marks the first time Ethereum staking has reached this level since transitioning to Proof of Stake consensus. Long-term investors have deposited over 850,000 ETH in September alone, according to on-chain data from Glassnode. This increase in staking not only enhances the security of the network but also signifies growing confidence in Ethereum’s long-term viability. Additionally, with over 25% of the total circulation supply now locked up in smart contracts, this milestone could potentially accelerate the Ethereum price upswing during the next bull rally.
The Fed Rate Pause Accelerated Staking Deposits
While Ethereum’s week-long price rally slowed after the Fed Rate pause announcement, behind the scenes, whale investors chose to ramp up ETH 2.0 staking by an additional 77,800ETH (approximately $126 million). The net change in ETH 2.0 staking deposits began to rise just days before the rate pause confirmation by the US Fed. With most staking participants being institutional entities and high-net-worth crypto whales, this increase suggests that they consider the yield earned from ETH 2.0 staking highly competitive compared to other asset classes in traditional finance. This boost in confidence could trigger an Ethereum price upswing in the mid to long term.
ETH Price Prediction: The Bulls Could Push For $3,000 During the Next Bull Rally
The recent removal of 3.5 million ETH coins from circulation and their staking in ETH 2.0 contracts could potentially drive the Ethereum price towards $3,000 if demand remains strong. The In/Out of Money Around Price data indicates that if Ethereum surpasses the $2,100 obstacle, the bulls will face less resistance on the path to $3,000. With over 30 million ETH staked in ETH 2.0 and a large cluster of ETH holders buying at an average price of $2,160, an Ethereum price rally to $3,000 is likely. However, if the price drops below $1,500, the bears could take control, but there is potential for a rebound if key support levels hold.
Hot Take: Ethereum Staking Milestone and Potential Price Impact
The recent milestone of 30 million ETH staked in Ethereum 2.0 contracts showcases growing confidence in Ethereum’s long-term viability and enhances network security. With over 25% of the total circulation supply locked up, this could speed up the Ethereum price upswing during the next bull rally. Additionally, the increase in ETH 2.0 staking deposits following the Fed Rate pause announcement indicates institutional and whale investors’ belief in the competitive yield offered by staking. This could boost retail investors’ confidence and trigger an Ethereum price upswing in the mid to long term. If demand remains strong and key resistance levels are surpassed, there is a possibility for the Ethereum price to reach $3,000 during the next bull rally.
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