- 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
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
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.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.