Ethereum
Ethereum price targets $3,500 as investors stake $620 million after Bitcoin halving
Ethereum (ETH) price opened at $3,140 on April 25, as the pioneering smart contract network begins to show early signs of an impending recovery phase. On-chain data trends show that ETH investors’ reaction to Bitcoin’s halving could be crucial to the next rally.
Is Ethereum price about to revisit $3,500?
Investors stake $620 million worth of ETH in 5 days
The Bitcoin network has executed its 4th halving on April 20, triggering high volatility in global crypto markets as investors look to potential gains from the historic event.
Since the Bitcoin halving, Ethereum price has struggled to find momentum amid declining market liquidity and a sense of nervousness among short-term swing traders. But interestingly, on-chain data trends show that Ethereum node validators have taken a more positive outlook.
The chart below shows official data on real-time changes in the number of ETH coins deposited into Ethereum Proof-of-Stake (Point of sale) Beacon Chain smart contracts.
On April 20, Bitcoin Halving Day, total staking deposits on the Ethereum Beacon chain stood at 31.6 million ETH. Interestingly, investors have since invested an additional 300,000 ETH, bringing the total stake to 31.9 million ETH at the time of writing on April 25.
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Like any PoS network, the increasing number of coins staked improves the security of the Ethereum network. But more importantly, it reduces market supply in the short term. In a period of low market demand, this could be key to slowing sales pressure.
Valued at current prices, this implies that Ethereum staked coins worth over $620 million in the 5 days following the Bitcoin halving. Clearly, this played a pivotal role in helping ETH price defend the $3,000 support level over the past few days.
ETH Price Prediction: Rocky Road at $3,500
Although temporarily, node validators drawing $620 million worth of ETH from the immediate market supply puts Ethereum price on track to consolidate above $3,000 as bulls prepare for the next attempt to reach $3,500.
However, to reclaim $3,500, the IntoTheBlock chart below shows that ETH must first scale the impending sell wall at the $3,250 level.
As shown above, 2.1 million addresses acquired 4.58 million ETH at an average price of $3,236. If they choose to exit at breakeven, ETH price could see intense headwinds and struggle to rise above $3,250 in the near term.
If Ethereum stakeholders continue to deposit more coins into the Beacon Chain, bulls could take advantage of the diminishing market supply to stage a decisive breakout above $3,500.
However, in the event of a bearish reversal, ETH could fall as low as $2,918 before finding a formidable support cluster.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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