Ethereum Staking Spikes; ETH Price Records Gains
Since December 2020, Ethereum staking deposits have experienced their highest one-day rise. On Tuesday, more than 200,000 ETH worth $550 million were delivered to the Beacon chain.
Ethereum Staking is Increasing
Meanwhile, the cryptocurrency market did not react much to the interest rate rise despite all speculation. The Federal Reserve announced a 0.25 percent hike in interest rates. High-risk investments, contrary to common opinion, did not exhibit any responses. The move might imply investor optimism about increasing inflation.
On the other hand, the US stock indexes and cryptocurrency market, which have recently been closely connected, are all green, and the DXY index is retracing.
That’s a fourfold increase from 50,000 ETH or less every day. As a result, someone may have transferred 150,000 ETH in a single transaction. That is most likely ConsenSys, who raised $450 million and said they would turn the funds into ETH for staking and defi. Note that 150,000 ETH is almost $400 million. However, there might also represent a boost in staking confidence due to the testnet merging.
Due to this move, long-term investors may be more confident in obtaining some staking return at 5% a year, rather than just simply holding. It has its dangers of slashing, but the Beacon chain has been functioning extremely successfully since inception with no issues. It will soon be operating the whole Ethereum network, including defi dapps and NFTs, with 10% of ethereum’s total supply at risk to safeguard the network.
Ethereum Merge on Kiln Testnet
Earlier this week, Ethereum merged on the Kiln testnet ahead of the blockchain’s ultimate transition to a proof-of-stake network, with network validators issuing post-merge blocks containing transactions. It could be another reason for the rise in staking amount.
The multi-stage transition to a proof-of-stake consensus method for Ethereum would validate transactions using nodes maintained by “stakers.” This move contrasts with the present proof-of-work approach, which depends on centralized organizations known as “miners” to validate network transactions.
According to Ethereum Foundation developers, Kiln will be the final merging testnet constructed before existing public testnets are updated. Kiln is presently encouraging application and toolset developers, node operators, infrastructure providers, and stakeholders to test it.
While the Merge was mostly successful, developer Tim Beiko noted that a single client was not delivering blocks and that the problem is in the investigation.
A Look into Ethereum’s Price
The bulls ramped up their game as ETH broke above the $2650 barrier level on the daily timeframe. It is now dealing with dynamic resistance (marked by yellow). In addition, the RSI-14D is below the downtrend line (shown by the red line).
Crossing and remaining above these dynamic resistances might be a significant positive indicator for an upswing. The most crucial mark to watch is $3300, and a breach of it might signal the conclusion of the downturn.
On the 4-hour timeframe, Ethereum has encountered resistance at $2850, which has already served as a short-term barrier in the previous month. It failed the first time it tried to break above the triangle created by the ROC-9 and is currently trying again. If Ethereum overcomes previously described resistances, the route above $3000 becomes smoother.
Dips Limited in ETH?
If ethereum fails to start a new uptrend over $2,800, it may begin a short-term negative correction. On the downside, an initial support level is at $2,750. The trend line and the next key support are both approaching $2,720.
The major support is at around $2,700. It is close to the 50% Fib retracement level of the upward advance from the swing low of $2,634 to the high of $2,791. A breach below the $2,700 support zone might trigger a new fall towards the $2,600 level.
