- The total volume of Ethereum tokens deposited in the ETH2 contract hit a new all-time high of 12.59 million.
- ETH reserves across exchanges have increased with a rise in netflow of the altcoin.
- Analysts have identified a “bear pennant” structure in the Ethereum price trend and predicted a decline of 25%.
The number of Ethereum tokens staked in the Eth2 contract has reached a new all-time high. Despite the key milestone, analysts fear further decline in ETH price, on account of "bear pennant" structure.
Ethereum price at risk despite new milestone
The Ethereum network achieved the highest volume of ETH staked in its deposit contract. This is considered critical to the token’s ciculating supply. Indeed, an increase in the quantity of ETH tokens staked on the Eth2 contract is considered bullish as it reduces the amount of tokens available to sell and contributes to the "shortage" across exchanges.
Roughly 12.59 million Ethereum tokens, worth nearly $26.6 billion, have been depsited in the Eth2 contract, marking a new all-time high.
The implementation of a burn mechanism and the transition to proof-of-stake are considered the two critical ways in which Ethereum can become deflationary.
Based on data from the burn portal, over 2.3 million ETH have been destroyed so far. When taking into consideration the tokens locked, more than 14.90 million ETH have been taken out of circulation, reducing the token’s supply by 12.31%.
The decline is expected to positively influence the Ethereum price in the long-term. Still, analysts believe that ETH may have more room to go down in the short-term.
Netflow across exchanges is the difference between inflow and outflow. This indicator has been positive for over a week, which implies there is a higher volume of Ethereum reserves across exchanges due to a spike in inflows.
The availability of a large quantity of ETH on an exchange platform increases selling pressure on the altcoin, and typically pushes prices lower. As long as the bars on the chart remain green, traders must remain cautious of a another price downswing.
ETH exchange netflow - all exchanges
Moreover, CryptoVizArt, a leading crypto analyst, believes Ethereum formed a bear pennant. This is a bearish continuation pattern that anticipates a 25% correction in Ethereum price if validated.
The analyst argues that the Ethereum price could invalidate the pessimistic outlook if it penetrates horizontal resistance at $2,450. Such a move could confirm the completion of the altcoin’s downtrend.
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.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.