Ethereum 2.0 Deposit Contract Crosses 3 Million ETH
Ethereum 2.0, the network upgrade of ETH, has crossed 3 million ETH under its deposit contract as the Ethereum community extended their support for ETH 2.0. The total value of ETH locked under the network upgrade jumped above $5.4 billion after the recent jump in the price of the world’s second-largest cryptocurrency.
Ethereum 2.0 started its journey in December 2020 with the launch of Beacon Chain. ETH 2.0 deposit contract crossed 1 million ETH within the first week of its launch. Ethereum network has started its journey to shift from the current proof-of-work network to a more efficient and improved proof-of-stake network.
ETH price is up nearly 150% since the start of 2021. The world’s second-largest digital asset registered an all-time high of $1,870 on 13 February as the total market cap of Ethereum jumped above $210 billion. As of writing, the cryptocurrency is trading near $1,750 with a total market cap of $200 billion.
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The CME Group launched Ethereum Futures Contracts last week and the Group reported the trading of 388 ETH contracts with a total trading volume of $33.6 million on its first day. ETH’s on-chain network activity has also increased significantly in the last few months as the network is now settling more value than BTC.
Ethereum Inflows
Finance Magnates earlier reported a significant jump in Ethereum-related weekly crypto inflows. ETH accounted for nearly 80% of the total $245 million crypto inflows during the first week of February 2021. Institutional demand for the world’s second-largest crypto-asset jumped substantially since the launch of Ethereum 2.0. Grayscale now has 3.13 million ETH under management with a total value of $5.67 billion. The CEO of Grayscale Michael Sonneshein reported growing interest in Ethereum-related investment products.
Ethereum 2.0 received strong support from the crypto community as staking participants are hopeful for an improved version of the network in the form of ETH 2.0. The current transaction fee of ETH is a big issue for the users, the network upgrade aims to address the issue of large transaction fee and the number of transactions per second.
Ethereum Price Prediction: Upward Momentum to $2,000 Intact
Ethereum price nosedived by more than 10% in the overnight session after a broad sell-off in cryptocurrency prices. The ETH price has dropped by more than 4% while Bitcoin, Cardano, Ripple, Litecoin, and Polkadot have fallen by more than 5% in the past 24 hours. This brings its total market cap to more than $200 billion.
Ethereum News: ETH suffered a harsh reversal after the price soared to an all-time high of $1,874 on Saturday. Similarly, Bitcoin rose to its all-time high of $49,700 after BNY Mellon, one of the biggest banks in the US started offering crypto custodial services.
Therefore, since there was no major news, the current weakness is mostly because of profit-taking. Furthermore, ETH price has already risen by more than 1,000% from its lowest level in 2020. So, what next for the Ethereum price?
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ETH price technical outlook
In an article earlier today, an analyst said that the Ethereum price was on track to decline by more than 35% to $1,040. He focused on the four-hour chart, which has developed a rising wedge pattern. However, this thesis seems to be premature since the chart he used showed that the wedge was not close to its tipping point.
Now, turning to the daily chart, we see that the ETH price fell to an intraday low of $1,661. This level was not by accident. In fact, it was along the ascending pink trendline that connects the lowest levels since January. In fact, the price has formed an ascending channel. Therefore, in the near term, there is a possibility that it will bounce back to $1,950, which is along the upper side of the channel. This is in line with my earlier prediction that ETH will soon rise to $2,000.
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ETH price chart
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Ethereum price primed for a 35% nosedive amid crypto market-wide correction
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Ethereum price nears the end of a rising wedge pattern, hinting at a 35% drop soon.
The number of ETH whales is on the decline adding credence to the bearish thesis.
A bullish scenario might come into the picture if the supply barrier at $1,760 is invalidated.
Ethereum price slipped into a rising wedge formation since it first tapped the previous all-time high on January 19. Since then, ETH has been sloping up, forming higher highs and higher lows.
However, this steady uptrend took a u-turn as the sell-off snowballed after hitting a new high of $1,877 on February 13.
Ethereum price rally weakens as sell-off intensifies
Ethereum has been trading in a rising wedge formation for almost a month. The technical formation is a bearish setup where prices slope up while the volume declines, forming a bearish divergence. A breakout from the rising wedge lower trendline would forecast a correction towards the first pivot high. In this case, that target is $1,040, or a 35% drop.
ETH/USD 4-hour chart
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that a close below $1,655 would invalidate the support barrier at $1,700, where 2.25 million ETH purchased by 140,000 addresses are underwater.
Hence, the resulting spike in selling pressure would result in a breakout of the rising wedge pattern pushing the ETH towards a target of $1,050.
Ethereum IOMAP chart
GIOM indicates that 4 million addresses previously purchased roughly 11.35 million ETH around the $1,050 level further supporting the bearish thesis.
Besides, the number of whales holding 100,000 to 1 million ETH saw a 1.25% decline to 159 between February 13 and 15. A further drop in the number of these holders would add to Ethereum’s already bearish outlook.
Ethereum Holders Distribution chart
However, a reversal in price may be possible if ETH fails to close below the rising wedge’s support line at $1,655.
Exchange addresses holding Ether have another plan
The number of ETH held on top exchange addresses has seen a large-scale reduction recently. This decline suggests that investors are confident in the smart contract platform’s bullish potential. The ETH held by these addresses has shrunk nearly 52% from 25 million in July 2020 to 12 million in February 2021, while the prices saw a 335% appreciation.
Ethereum held by top exchange addresses chart
The last time these addresses dropped almost 47% between August 2016 and August 2017, Ethereum price rose a massive 3,050%. Hence, if something similar was to happen, ETH can be expected to surge violently.
Therefore, a sudden spike in buying pressure around the $1,655 level leading to a close above the $1,760 resistance barrier would alleviate the short-term bearish outlook.
However, a close above the rising wedge’s upper trendline would indicate the bearish thesis’ invalidation and project the re-entry of Ethereum into price discovery mode towards the $2,200 level.