Ethereum (ETH) price opened at $3,140 on April 25th as the pioneer smart contract network began showing early signs of an impending recovery phase. Trends in on-chain data indicate that ETH investor reaction to the Bitcoin halving could be crucial for the next bull market.
Is Ethereum price on the verge of revisiting $3,500?
Investors stake $620 million worth of ETH in 5 days
The Bitcoin network will undergo its fourth halving on April 20th, sending a storm across global crypto markets as investors look to pre-empt potential profits from this landmark event. caused volatility.
SSince the Bitcoin halving, Ethereum prices have struggled to regain momentum amid reduced market liquidity and volatile sentiment among short-term swing traders. But strangely, on-chain data trends indicate that Ethereum node validators have a more positive outlook.
The graph below shows official data on real-time changes in the number of ETH coins deposited on Ethereum Proof of Stake (PoS) Beacon Chain smart contracts.
At the April 20th Bitcoin halving, the total staking deposits on the Ethereum Beacon chain was 31.6 million ETH. Interestingly, the investor has since staked an additional 300,000 ETH, bringing his total staked as of April 25th to 31.9 million ETH.
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Like other PoS networks, increasing the number of staked coins increases the security of the Ethereum network. But more importantly, it reduces short-term market supply. During periods of weak market demand, this can be critical in reducing sell-side pressure.
At current prices, this means that Ethereum has staked more than $620 million worth of coins within five days of the Bitcoin halving. Obviously, this played a pivotal role in helping ETH price defend the $3,000 support level over the past few days.
ETH Price Prediction: Rocky Road to $3,500
Ethereum price is on track to move above $3,000 as bulls plot their next attempt at $3,500, albeit briefly, as node validators pulled 620 million ETH from the immediate market supply. It will be solid.
However, to regain $3,500, IntoTheBlock's In/Out of the Money chart below shows that ETH first needs to overcome the looming sell wall in the $3,250 area.
As shown above, 2.1 million addresses acquired 4.58 million ETH at an average price of $3,236. If they choose to exit at break-even, ETH price could face severe headwinds and struggle to break above $3,250 in the short term.
If Ethereum stakeholders continue to deposit more coins into the Beacon chain, the bulls could take advantage of thin market supply to trigger a decisive breakout above $3,500.
However, if a bearish reversal occurs, ETH could fall to $2,918 before finding a strong support cluster.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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