- Ethereum tokens that are out of circulation hit a new all-time high of 18.87 million, following the Shapella upgrade.
- Spike in volume of Ether out of circulation signals the likelihood of recovery in ETH and a reduction in selling pressure on the altcoin.
- Experts believe Ethereum price could hit the bullish target of $1,925 once it begins its recovery.
Ethereum tokens being pulled out of circulation have hit a new all-time high based on data from crypto intelligence tracker Nansen. Following the Shapella upgrade, Ethereum locked out of circulation hit 18.87 million ETH.
Also read: Meme coin traders hunt for the next PEPE, ape into low market cap projects for gains
Ethereum locked out of circulation hits record since Shapella
Ethereum recently wiped out all its gains since the Shapella upgrade. Based on data from crypto intelligence tracker Nansen, total ETH locked out of circulation, which includes staked ETH, the altcoins deposited to the contract but not validated yet and the rewards on the contract have together exceeded 18.87 million, a new all-time high.
Ethereum deposits and withdrawals
This is a key metric since Ether that is pulled out of circulation reduces the selling pressure on the altcoin. It indicates decline in exchange wallet reserves and supports a bullish thesis for the asset.
Will Ethereum recover its losses?
A spike in ETH locked out of circulation fuels the thesis for Ethereum price recovery. Experts believe the altcoin is primed to recover its gains. Interestingly, ETH price has nosedived below $1,850, reducing the percentage of holders profitable at the current price level. This is likely to discourage traders that are sitting on unrealized losses, from shedding their ETH holdings.
As seen in the price chart below, Ethereum is currently in a short-term uptrend that started in December 2022. The altcoin hit a peak at $2,138 before receding to critical support at $1,851. If buying pressure sustains and volume of ETH locked continues climbing higher, Ether is likely to recover and make a comeback above $1,925, a level that coincides with the 10-day Exponential Moving Average (EMA).
ETH/USDT 1D price chart
Ether price is steady above the 50-day and 200-day Exponential Moving Averages at $1,829 and $1,654 respectively. Bullish targets for Ether are resistance at $1,925, and $2,023, followed by the April 2023 peak of $2,138. A decline below the 50 and 200-day EMAs could invalidate the bullish thesis for Ethereum.
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.