Ethereum price starts uptrend as nearly 10% of the supply is staked in ETH2 contract


  • Ethereum price posted 8% gains over the past week as the altcoin continues its uptrend. 
  • 8.56% of Ethereum's circulating supply is now staked in the ETH2 deposit contract, reducing the altcoin's circulation. 
  • Analysts believe Ethereum price is on track for a 20% breakout and predict a rally in the altcoin. 

Ethereum price is on track for a rally with a brewing supply shortage. Nearly 10% of the altcoin's supply has been pulled out of circulation through staking in the ETH2 contract. 

Ethereum price prepares for 20% upswing, staking reduces ETH supply 

Ethereum price is on track for a 20% rally, according to analysts. As the merge hit the testnet, it fueled a bullish narrative among investors. 8.56% of Ethereum's circulating supply is now locked in the ETH2 staking contract. 

Proponents believe the merge will arrive on the Ethereum network in the second half of 2022, and once it does, will boost the altcoin's staking yield. Over $10 million worth of ETH is staked in the ETH2 contract. 

ETH2 staking statistics

ETH2 staking statistics

The merge is considered a key milestone for the Ethereum blockchain, as proponents argue this event will turn the altcoin into a deflationary asset. This implies a rise in buying pressure and a positive impact on Ethereum price. 

Within months following the merge, Ethereum is expected to cut 90% of its daily emissions, and the reward for its validators could climb over 200%. These statistics have triggered a bullish sentiment among traders. 

Analysts have evaluated the Ethereum price trend and predicted a 20% upswing in the altcoin. FXStreet analysts argue Ethereum has a strong weekly candle. Analysts have identified a bull flag set up in the Ethereum price chart. On a close above $3,033, Ethereum price could start an uptrend targeting a 20% upswing in the current cycle of the altcoin. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH? Premium

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH?

Pepe (PEPE) price shows signs of continuing its uptrend, but it might come after a correction. This short-term pullback could be used by sidelined buyers to accumulate PEPE for the next leg up.

More Pepe News

Grayscale launches new investment vehicles for NEAR and STX

Grayscale launches new investment vehicles for NEAR and STX

Grayscale announced the creation and launch of Near Protocol (NEAR) and Bitcoin Layer 2 Stacks (STX) single asset trusts. The company stated that the launch is an attempt to satisfy increased investors' demands for diversified crypto-asset exposure.

More Cryptocurrencies News

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum (ETH) bounced back after a brief dip on Thursday as the Securities & Exchange Commission (SEC) approved spot ETH ETFs in a shocking U-turn. US lawmakers had earlier penned a letter to Chair Gary Gensler, urging him to approve the ETFs.

More Ethereum News

XRP set for rally after Coinbase listing in New York

XRP set for rally after Coinbase listing in New York

Coinbase's Chief Legal Officer announced the listing of XRP for its New York clients. XRP was initially removed from the exchange in January 2021 due to an SEC lawsuit on claims of the asset breaking securities regulation.

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis

BTC

ETH

XRP