For years, Ethereum (ETH) has been extremely popular among altcoin investors, and this popularity is backed by good reasons. Indeed, Ethereum’s current outlook is exciting. Although recent events have caused some investor anxiety, reflected in ETH’s price, there are reasons to be optimistic. Let’s now look at the current situation for Ethereum (ETH).
Like most altcoins, Ethereum saw a correction last week with a value loss of 3%. This fall in price brought loss to investors. However, despite this, the amount of ETH being staked has been increasing for several months, indicating high investor confidence in the altcoin king. The amount of staked ETH, particularly after Shapella, met expectations and set All-Time High (ATH) levels.
According to Glassnode, the percentage of Ethereum addresses in profit reached a one-month low of 58.448%. In addition, the number of Ethereum addresses holding more than 1,000 ETH reached a yearly low, showing that some investors have sold their assets.
The value of ETH 2.0 has recently recorded a sharp increase. As per Glassnode, the total value of ETH 2.0’s Deposit Contract reached 23,998,443 ETH at the time of writing. In fact, the likelihood of the amount of locked ETH surpassing the declining ETH balance on exchanges is high. Therefore, looking more closely at the scenario, it is seen that ETH could rise above $1,800 again.
An increase in the amount of locked ETH will result in a significant reduction in selling pressure. Having less ETH on exchanges reassures investors. On the other hand, while the SEC’s pressure makes many altcoins sweat, there is a strong dispute over whether ETH is a security. On this issue, the SEC and CFTC differ in their views.
According to CryptoQuant, ETH’s foreign exchange reserves were dwindling, showing that it is not under selling pressure. The same situation was confirmed by the increasing supply of ETH outside exchanges while the supply on exchanges decreases.
For now, the ETH price is holding above $1,700. If the Bitcoin price does not suffer significant losses in the short term, investors could see the ETH price target $2,000 again.