Ethereum staking explodes ahead of the Merge, 13.3 million ETH on the deposit contract

  • Ethereum staking rate exceeded 11% ahead of the transition to proof-of-stake, according to OKLink.
  • 36,000 ETH have been added every week to the staking contract since the beginning of August. 
  • Ethereum price could decline to $1,300 before bouncing higher, argue analysts. 

The Ethereum Merge, scheduled for mid-September, is drawing closer, as the volume of ETH deposited in the contract explodes. ETH2 staking addresses have climbed, as 13.3 million Ethereum tokens have been staked so far. 

Also read: Ethereum bears initiate takeover as Merge shadow fork encounters issues

Can a peak in Ethereum staking help ETH price recover?

Ethereum price suffered a decline, yielding 20% losses over the past week. Based on data from OKLink, there is a consistent increase in the volume of Ethereum staked on the ETH2 contract. 13,344,312 ETH tokens have been staked on the ETH2 staking contract, equivalent to $20.7 billion. 

Despite the uncertainty surrounding Ethereum’s transition to proof-of-stake and the likelihood of a hard fork driven by proof-of-work proponents, the community has supported the Merge through ETH staking. It remains to be seen whether an increase in the volume of ETH staked fuels a bullish sentiment among holders. 

ETH2 Staking

ETH2 staking

Every week since the beginning of August, 36,000 ETH have been deposited in the contract. This shows crypto trader’s support for the altcoin ahead of the Merge, an event slated to change the course of Ethereum’s value, utility and adoption. 

Ethereum price could decline before recovery 

Analysts have evaluated the Ethereum price chart and revealed a likelihood of decline to $1,300. Smart Contracter, a leading crypto analyst and trader, predicts that ETH could hit a higher low before its recovery. The analysts considers $1,300 the ideal price level to accumulate the altcoin. 

Smart Contracter applied Elliott Wave Theory to the Ethereum price chart and noted that the larger ABC pattern correcting the five wave rise has begun on Ethereum. The analyst therefore expects a bounce that ends up being a higher low for Ethereum. 

If Ethereum price structure continues to look bullish at $1,300, that is the correct level to scoop up ETH before the final wave, and a recovery rally. 

ETH-USD 1-day price chart

ETH-USD 1-day price chart

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

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent Bill Morgan slams Michael Saylor for promoting Bitcoin as perfect money. XRP Ledger AMM has crossed a milestone of 20 million XRP tokens in Total Value Locked.

More Ripple News

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin spot ETFs show continuous outflow from June 13 to June 21. BTC miners have also seen a decline in their reserves. Bitcoin price is trading inside a descending wedge, and a breakout above $64,600 signals a bullish move.

More Bitcoin News

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Bitcoin dipped under $63,000 on Monday, lowering crypto market capitalization by over 3%, per CoinGecko data. BTC is in a state of decline, and news of VanEck’s Spot Bitcoin ETF launch in Australia failed to improve traders' sentiment. 

More Cryptocurrencies News

Pepe poised for 20% crash

Pepe poised for 20% crash

Pepe price breaks below the ascending trendline support on Sunday, suggesting  a bearish move. On-chain data suggests that PEPE’s active addresses are decreasing, signaling lower demand for the network.

More Pepe News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. 

Read full analysis