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Ethereum stakers have high confidence in the altcoin, can it catalyze ETH price rally?

  • Ethereum 2.0 stakers have seen realized value completely taper off over the past ten weeks. 
  • Ethereum tokens deposited in the ETH2 deposit contract hit a new all-time high despite long-term stakers being down an average of 31%. 
  • ETH stakers and long-term holders remain confident of Ethereum price rally despite average losses. 

Ethereum 2.0 staking remained popular among holders despite long-term stakers facing average losses of nearly 31%. Over the past ten weeks, realized value of Ethereum (ETH), the average price of Ether supply valued at the day each coin was last transacted on-chain, has eroded. 

Despite the mounting pressures, Ethereum stakers and long-term holders seem to be undeterred. ETH market participants are anticipating a recovery in the altcoin’s price. 

Also read: Vitalik Buterin dumps airdropped MOPS, CULT, SHIK ahead of Shanghai upgrade, triggers liquidity drain

Ethereum staked in ETH2 deposit contract continues rising

As the Ethereum Shanghai upgrade – and the ETH token unlock event – is drawing close, stakers are pouring the altcoin in the ETH2 deposit contract. The total number of Ethereum tokens deposited in the contract has climbed to 17.52 million, based on data from crypto intelligence tracker Nansen.

ETH2 deposit contract

ETH2 deposit contract

According to experts from crypto intelligence tracker Santiment, Ethereum 2.0 stakers have seen an erosion of realized price over the past 10 weeks. Analysts at Santiment note that long-term stakers are down an average of 31%. Despite the unrealized losses, the volume of staked ETH continues climbing. 

The Ethereum network recently surpassed 1.9 billion transactions. This marks an important milestone for the altcoin’s journey. The second-largest cryptocurrency by market capitalization has sustained above the $1,553 level, after its recent decline from $1,600 on March 3. 

In/Out of the money Ethereum

In/ Out of the Money Ethereum

Based on data from IntoTheBlock, the $1,525 level is key support for Ethereum as 5.93 million wallet addresses accumulated ETH between $1,272.13 and $1,525. If the support wall at $1,525 holds, the altcoin could climb higher. 

Author

Ekta Mourya

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.

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