Ethereum, after three weeks of solid price returns, finally found support above the $ 3k level. However, as the market consolidated, the Ethereum price experienced some declines for a few days. However, its price action reversed course soon thanks to Bitcoin winning on the chart. In fact, the same thing pushed ETH past the $ 3,200 mark.
After the implementation of EIP-1559, there have been considerable changes in the network. That has certainly had an effect on the price of the altcoin as well. On the one hand, this Ethereum rally has been supported by capital rotations and a high value staked on ETH 2.0, such as outstanding by Glassnode.
The exits and the stakes stole the show
Ethereum’s price trajectory was supported by continued ETH supply outflows on exchanges. Exchange ETH balances, at the time of writing, had dropped to a record low of 13% of circulating supply this week. This was equivalent to 15.3 million ETH.
At the same time, there has been a steady increase in the total stake, with the metric showing a near vertical rally at the time of writing.
This increase in exits signaled increased buying pressure and an increase in traders’ HODL positions to store coins in their own wallets. In terms of the total value currently staked on the ETH 2.0 contract, more than 7 million ETH has been deposited, representing around 6% of the circulating supply.
The trend of ETH being pulled from exchanges and deposited into performance opportunities in the DeFi space is a trend to watch out for.
Lido also rises
High outflows are indicative of an asset moving to cold wallets or possibly betting or investing in DeFi. The stakes have been high, as have investments in DeFi.
Notably, a reasonable volume of Ethereum is being transferred to the Ethereum 2.0 share contract. This statement can be evidenced by the increase in the Lido’s deposits. These have continued to skyrocket, reaching 12% of the total supply at stake this week.
The DeFi Lido project is one of the leaders in no-permission gambling for ETH. Lido’s LDO government token is currently valued at a market capitalization of $ 148 million. What’s more, it increased 27% in a single 24-hour window.
Ethereum for profits?
Now the buying pressure has been high and exits have been supported by gambling activity. However, in terms of price action, ETH is still struggling to break out and hold a position above $ 3.3k.
A move above that level would mean another run and there could be new staking and exit ATHs. Until then, it is imperative to keep an eye on the aforementioned metrics.
This is a machine translation of our English version.
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