Ethereum price primed to explode after 12 million ETH out of circulation
- Ethereum price benefits from bullish view after the amount of Ethereum staked on the ETH2 network surpassed 10 million milestone.
- Transaction fees on the Ethereum network dropped to mid-2021 lows, fueling user demand.
- Analysts predict a breakout in Ethereum as the volume of ETH tokens burned skyrockets.
Ethereum price struggles to recover against the rising volume of ETH tokens deposited in the staking contract. Nearly 2 million Ethereum tokens have been burned so far, fueling a bullish outlook among investors.
Ethereum price could breakout in response to burn
Ethereum price’s bullish outlook comes after the total volume of Ethereum deposited in the ETH2 staking contract exceeded 10 million. The explosive growth in volume promises a certain amount of ETH in constant staking rewards for investors.
Based on data from crypto intelligence platform IntoTheBlock, over 65,910 unique Ethereum addresses contributed to the ETH staked, which totals 8.4% of the altcoin's circulating supply.
Interestingly, nearly 2 million ETH tokens have been burned since the London hard fork. The altcoin's supply is shrinking with the reduction in the number of ETH in circulation and the burn. Historically, this fuels a bullish breakout in the altcoin's price.
Proponents have noted a drop in transaction fees on Ethereum's network. The cost of transfer has dropped to 2021 lows on the altcoin's blockchain. Low transaction costs attract users and fuel demand for the altcoin among investors.
Analysts have evaluated the Ethereum price trend and predicted a bullish breakout. @DaCryptoGeneral believes the Ethereum price trend could be bullish or bearish, depending on the direction in which the symmetrical triangle breaks out.
An upside breakout could push the Ethereum price to $5,500 – the downside target is $1,700.
$ETH (1D) price might be bullish or bearish depending on the breakout direction of symmetrical triangle.
— CRYPTO GENERAL (@DaCryptoGeneral) March 10, 2022
If it breaks to upside my target would be $5500 & if it breaks down the downtrend will continue and would target $1700#Ethereum pic.twitter.com/GgAJpfBC43
Ran NeuNer, cryptocurrency analyst and founder of Crypto Banter, believes that Ethereum is teasing us with a potentially massive breakout. Post the bloodshed; the largest altcoin is leading the way in the ongoing recovery of cryptocurrencies.
Ethereum could break out of the daily descending resistance trend line from November 2021 in a new price rally, according to NeuNer.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
