25% of ETH’s Supply Staked by Validators: Long-Term Bullish Potential
Almost a year after the Shapella upgrade, validators have staked 25% of ETH’s supply, indicating a bullish potential for the cryptocurrency. According to Nansen’s dashboard, approximately 30 million ETH has been staked, with 936,849 validators participating in the process.
Full-blown staking on Ethereum began after the Shapella upgrade in 2023, giving it more popularity.
Validators stake ETH to secure and maintain the Ethereum network and receive a share of the reward, which ranges from 6% to 15% APR.
Not all holders can stake ETH, as the minimum requirement is 32 ETH, earning validators 2 to 5 ETH yearly.
Lido Finance is the preferred staking platform for depositors, holding a market share of 31.8%.
The average price of staked ETH is $2,022, indicating participants have gained from the altcoin’s price and rewards.
ETH’s Long-Term Potential Boosts Interest in Staking
ETH’s long-term potential has seen an increase in interest, with staking deposits picking up in recent weeks. According to Dune Analytics, there has been a significant increase in participants’ interest, with the netflow on the 14-day Moving Average reaching 840,263.
ETH’s price increased to $2,435 on the day the staked supply hit 25%, indicating confidence in its long-term potential.
Ethereum remains deflationary, with a supply change of -3342.67 ETH. This deflationary status suggests a bullish outlook for ETH due to high demand and low supply.
The Liquidity Heatmap reveals potential levels of liquidity for traders. On the upside, liquidation could occur around $2,520, which may also serve as a resistance point for ETH.
Traders looking to long ETH should watch out for targets, especially if the resistance at $2,520 is flipped. The next liquidation point could be around $2,750.
Shorts should observe ETH’s movement around $1,855 and $2,100, as sellers’ aggression failing to appear could lead to high-level traders being wiped out in this region.
Analyst comment
Positive news: 25% of ETH’s supply has been staked by validators, indicating a bullish potential for the cryptocurrency. Long-term interest in staking has also increased. The price of ETH has risen, suggesting confidence in its potential. Ethereum’s deflationary status and liquidity heatmap support a bullish outlook. Analyst: ETH market will likely continue to see growth and potential resistance at $2,520 could be flipped, with the next target at $2,750. Shorts should be cautious around $1,855 and $2,100.
