The number of Ethereum tokens staked in the ETH2 contract has surpassed all previous records. Despite the significant milestone, analysts predict that the price of ETH will continue to fall because of the “bear pennant” structure.
The Ethereum network’s deposit contract received the biggest volume of ETH staked. This is important for the token’s circulating supply. Indeed, a rise in the number of ETH tokens pledged on the Eth2 contract is bullish since it reduces the number of tokens available for sale and contributes to the “shortage” on exchanges.
The Eth2 contract has deposited over 12.59 million Ethereum tokens, worth nearly $26.6 billion, setting a new all-time high. The implementation of a burn mechanism and the switch to proof-of-stake are thought to be the two most important steps in making Ethereum deflationary.
Over 2.3 million ETH has been destroyed so far, according to data from the burn webpage. When the tokens locked are taken into account, more than 14.90 million ETH have been removed from circulation, lowering the token’s supply by 12.31 percent.
ETH Price to Fall Further?
In the long run, the price of Ethereum is projected to benefit from the drop. Analysts believe that ETH has room to fall further in the short term.
The difference between inflow and outflow across exchanges is known as NetFlow. This indicator has been positive for over a week, indicating that due to a surge in inflows, there is a bigger volume of Ethereum reserves across exchanges.
The presence of a big amount of ETH on an exchange platform raises selling pressure on the altcoin, causing prices to fall. Traders should be wary of another price drop as long as the bars on the chart remain green.
Ethereum has formed a bear pennant. If confirmed, this is a bearish continuation pattern that hints a 25% drop in ETH price.
If the altcoin breaks through the horizontal barrier at $2,450, it will invalidate the bearish forecast. A move like this could signal the end of the altcoin’s downturn.
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