The Ethereum price closed the last week at over 1,300 US dollars. The ETH course was thus able to overcome the psychological mark, which corresponds to the all-time high of the last market cycle.
The Ethereum price rose continuously over the weekend until Monday morning. At the time of publication of this article, the ETH price is at 1,460 US dollars – about 20 percent above the price of a week ago. In addition, Ethereum was able to outperform Bitcoin by a few percentage points.
The crypto analyst and trader “Bluntz” tweeted that the ETH price rose above the 200-week moving average and therefore the ETH price may have already reached the bottom. In his opinion, “the time to be bearish is over.” However, the current upward movement could also be a so-called “bull trap”.
Ethereum Price Rises: Bull Trap?
The long-awaited Ethereum merge by the crypto community, in which the blockchain switches to the proof-of-stake consensus mechanism, is scheduled to take place on September 19, 2022, according to reports from July 15, 2022. The Ethereum merge is one of the most important upgrades in the history of crypto and the Ethereum network.
In addition, Ethereum developers successfully carried out another shadow fork last week to test new merge features, such as the MEV feature (“Maximum extractable value”). The final test phase is scheduled to start on August 11 on the Goerli test network.
Despite this positive news and the associated price increase, the bears were still able to dominate the market. The Ethereum price is currently still about 70 percent below the all-time high of November 2021. Since then, the crypto market is still in a major consolidation phase.
Further possible interest rate hikes by the Federal Reserve and news about the current recession could trigger a final capitulation phase of market participants. So it may well be that the Bitcoin price falls again below the 20,000 US dollar mark during the month. Since the ETH price follows the BTC price, we could also see further sell-offs with Ethereum.
In addition, the crypto market has been in a bear market for about 8 months. However, in the past, crypto bear markets usually lasted a little longer. So the pump of the last 3 days could actually be a bull trap.
Despite the current market situation, institutional investors continue to accumulate ETH. According to CoinShares’ latest weekly report, there has been a positive flow of capital into Ethereum-based products and funds. At the same time, there was an increased inflow into Bitcoin short products.
Non-institutional investors have also been investing more ETH in recent weeks, as on-chain data shows.
Ethereum 2.0: A picture of BeInCrypto.com
ETH Staking data show annual best values
On July 18, 2022, blockchain analytics firm Glassnode announced that the number of Ethereum addresses holding more than 32 ETH recently rose to a new 16-month high. 32 ETH is the minimum number of ETH that investors need to be able to operate an Ethereum node. Nodes secure the Ethereum network with the staking mechanism.
However, running a node is not the only way to stake ETH. Numerous crypto exchanges offer retail investors the opportunity to stake ETH together.
According to the Beacon Chain Explorer, around 13,000,000 ETH are currently blocked for staking. At current prices, the total value of this ETH amounts to around 18.3 billion US dollars and corresponds to about 11 percent of the total supply in circulation.
There has been some speculation that there could be a massive ETH sell-off after the Ethereum merge. Because the staking ETH must be released for the change of the consensus mechanism. However, the developers confirmed that ETH will not be released all at once, but gradually, to ensure the security of the network.
The Ethereum price closed the last week at over 1,300 US dollars. The ETH course was thus able to overcome the psychological mark, which corresponds to the all-time high of the last market cycle.
The Ethereum price rose continuously over the weekend until Monday morning. At the time of publication of this article, the ETH price is at 1,460 US dollars – about 20 percent above the price of a week ago. In addition, Ethereum was able to outperform Bitcoin by a few percentage points.
The crypto analyst and trader “Bluntz” tweeted that the ETH price rose above the 200-week moving average and therefore the ETH price may have already reached the bottom. In his opinion, “the time to be bearish is over.” However, the current upward movement could also be a so-called “bull trap”.
Ethereum Price Rises: Bull Trap?
The long-awaited Ethereum merge by the crypto community, in which the blockchain switches to the proof-of-stake consensus mechanism, is scheduled to take place on September 19, 2022, according to reports from July 15, 2022. The Ethereum merge is one of the most important upgrades in the history of crypto and the Ethereum network.
In addition, Ethereum developers successfully carried out another shadow fork last week to test new merge features, such as the MEV feature (“Maximum extractable value”). The final test phase is scheduled to start on August 11 on the Goerli test network.
Despite this positive news and the associated price increase, the bears were still able to dominate the market. The Ethereum price is currently still about 70 percent below the all-time high of November 2021. Since then, the crypto market is still in a major consolidation phase.
Further possible interest rate hikes by the Federal Reserve and news about the current recession could trigger a final capitulation phase of market participants. So it may well be that the Bitcoin price falls again below the 20,000 US dollar mark during the month. Since the ETH price follows the BTC price, we could also see further sell-offs with Ethereum.
In addition, the crypto market has been in a bear market for about 8 months. However, in the past, crypto bear markets usually lasted a little longer. So the pump of the last 3 days could actually be a bull trap.
Despite the current market situation, institutional investors continue to accumulate ETH. According to CoinShares’ latest weekly report, there has been a positive flow of capital into Ethereum-based products and funds. At the same time, there was an increased inflow into Bitcoin short products.
Non-institutional investors have also been investing more ETH in recent weeks, as on-chain data shows.
Ethereum 2.0: A picture of BeInCrypto.com
ETH Staking data show annual best values
On July 18, 2022, blockchain analytics firm Glassnode announced that the number of Ethereum addresses holding more than 32 ETH recently rose to a new 16-month high. 32 ETH is the minimum number of ETH that investors need to be able to operate an Ethereum node. Nodes secure the Ethereum network with the staking mechanism.
However, running a node is not the only way to stake ETH. Numerous crypto exchanges offer retail investors the opportunity to stake ETH together.
According to the Beacon Chain Explorer, around 13,000,000 ETH are currently blocked for staking. At current prices, the total value of this ETH amounts to around 18.3 billion US dollars and corresponds to about 11 percent of the total supply in circulation.
There has been some speculation that there could be a massive ETH sell-off after the Ethereum merge. Because the staking ETH must be released for the change of the consensus mechanism. However, the developers confirmed that ETH will not be released all at once, but gradually, to ensure the security of the network.
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