Ethereum staking increased significantly after the Shanghai upgrade on April 12, with deposits outpacing withdrawals. According to Etherscan, ETH staking deposits on the Beacon Chain reached another all-time high, with 24.17 million ETH worth $46.03 billion at a price of $1903 as of June 3.
Moreover, total ETH deposits post-Shanghai upgrade is 6 million ETH, while total withdrawals accounts for only 3 million, as per Nansen deposit contract data.
Moreover, Ethereum (ETH) balance on the crypto exchanges has reached a new five-year low. CryptoQuant data indicates that the total amount of ETH held in crypto exchanges dropped to critical levels. ETH on exchanges now stands at almost 16 million, reaching levels not recorded since July 2018. In fact, it has declined 50% since the all-time high.
Interestingly, Nansen data indicates ETH locked has also reached an all-time high of 22.4 million. ETH locked means all ETH that is out of circulation, it includes ETH staked on the Beacon Chain, ETH deposited to the Beacon contract but not validating yet, and rewards on the Beacon chain.
Typically, an increase in the amount of ETH locked and staking led to a decrease in the overall supply of Ethereum tokens available in the market. The decrease in ETH will cause prices to rally higher.
Also Read: Celsius $800M ETH Staking Extends Ethereum Queue
Ethereum Realized Price At 6-Month High
As a result of low ETH supply in the market, Ethereum realized price has hit a 6-month high of $1470. It can be interpreted as the on-chain support for ETH price. The price has now less probability of falling below the level, making institutional investors more inclined to Ethereum than Bitcoin.
As per CoinGape Markets, ETH price can hit $2500 due to the bullish morning star candlestick pattern formed after ETH breakout above the 2-month resistance trendline. In addition, a bullish breakout from the wedge pattern has set the Ethereum price on a recovery track.
ETH price currently trades above $1900, up 5% upside in a week. It indicates that investors are buying on dips in anticipation of a major upcoming rally.
Also Read: Terra Classic Officially Releases Its Biggest v2.1.0 Parity Upgrade Proposal
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
