Ethereum Watch

• Almost 365 days after the Shapella upgrade, validators have staked 25% of ETH’s supply.
• ETH remained deflationary, indicating a long-term bullish potential.

AMBCrypto’s query on Nansen’s dashboard showed that about 25% of the total Ethereum [ETH] supply has been staked. This percentile amounts to 30 million ETH.

From the result of the query, Nansen showed that 936,849 validators were involved in the process.

Full-blown staking on Ethereum began after the blockchain’s Shapella upgrade in 2023. Though the activity has been in place since the September 2022 Merge, the Shapella upgrade gave it more popularity.

So, instead of miners, validators are now in charge of securing and maintaining the Ethereum network.

Validators prefer to stick to Lido

Besides ensuring network security, validators stake ETH to get a share of the reward. This reward is usually between 6% to 15% Annual Percentage Rate (APR).

It is, however, important to mention that some ETH holders might not be able to stake. This is because the minimum requirement is 32 ETH which earns validators 2 to 5 ETH yearly.

Furthermore, an analysis of the staking data showed that Lido Finance [LDO] remained the preferred staking platform for depositors.

At press time, its market share in the staking sector was 31.8%. Also, the average price of the staked ETH was $2,022, indicating that most participants have gained from the altcoin’s price as well as the rewards.

For a large part of January, ETH staking deposits dropped. But the condition changed since the last week of the 1st month.

According to Dune Analytics, Netflow on the 14-day Moving Average (MA) had increased to 840, 263. This increase suggests that participants’ interest in the activity has jumped.

ETH aims for $2,750

It also inferred that players were confident in ETH’s long-term potential. Interestingly, ETH’s price increased to $2,435 on the same day the staked supply hit 25%.  The performance represents a 3.19% increase in the last 24 hours.

Meanwhile, data from ultra sound money revealed that Ethereum had maintained its deflationary status.

As of this writing, the supply change was -3342.67 ETH. Ethereum being deflationary means that the cryptocurrency no longer has an infinite supply. In the long term, this could be bullish for ETH since high demand with low supply leads to a price increase.

AMBCrypto also analyzed the Liquidity Heatmap. The Liquidity Heatmap attempts to predict levels where traders might get the best liquidity positions.

On the upside, liquidation could occur around $2.520. This level might also serve as a resistance point for ETH.

How much are 1,10,100 ETHs worth today?

If bulls flip this resistance, the next liquidation point could be around $2,750. Therefore, traders looking to long ETH with high margins should watch out for their targets.

On the other end, shorts should watch out for ETH’s movement around $1,855 and $2,100.  Should sellers’ aggression fail to appear, high-level traders around this region risked being wiped out.

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