1. Staking Trends
Staked ETH surges: More than 33% of Ethereum supply is now staked in Ethereum 2.0. Specifically, 47.38 million ETH (equivalent to 33.9% of the total supply) is locked in the ETH2 Beacon deposit contract1.
Deflationary Effect: ETH remains in a deflationary state due to Ethereum’s proof-of-stake consensus mechanism and the burning of transaction fees. This reduces the circulating supply, potentially increasing its value over time.
Changes in holdings: Larger wallets, especially those holding more than 10 million ETH, have increased their share of the total supply by 23% over the past two years. In contrast, small and medium-sized wallets have seen their holdings decline.
2. Whale activity
Large Withdrawals: Recently, an Ethereum whale withdrew 16,449 ETH (worth $50.3 million) from Binance, transferring it to a new wallet. The move coincided with the expected approval of the Ethereum ETF.
Potential Bullish Outlook: The timing of this massive withdrawal suggests a bullish outlook for Ethereum as it aligns with the expected ETF approval.
3. Ethereum ETF Expectations
Approval Coming Soon: The United States is expected to approve a spot Ethereum ETF soon, with analysts predicting that it could be approved around July 2021.
Institutional Inflows: Ethereum investment products saw inflows of $10.2 million last week, suggesting that institutional players are gearing up for ETF approval.
Market Impact: The approval of an Ethereum ETF is expected to be a major catalyst for ETH, potentially pushing up its price. Historical data suggests that such approvals can lead to significant price increases.
4. Market sentiment and price trends
Current Price Levels: As of the latest data, the price of Ethereum has rebounded to around $3,100.
Long-term holders: Long-term holders (LTH) currently control around 78% of Ethereum’s circulating supply. This trend is seen as bullish as these investors are less likely to sell their holdings, thus reducing downward pressure on prices.
Recent Liquidations: Decentralized computing platform Golem Network has been liquidating its ETH holdings, depositing a total of 29,000 ETH (worth nearly $90 million) to various cryptocurrency exchanges over the past week.
5. Regulation and market development
SEC’s stance: The SEC has been cautious about approving crypto-related ETFs, but recent developments suggest a more positive outlook for an Ethereum ETF.
Global Market Impact: Regulatory decisions in major markets such as the United States have a significant impact on Ethereum’s price and trading volume. The upcoming US election and the new administration’s stance could further influence these trends.
Summarize
As of today, Ethereum’s trading trends are characterized by a significant increase in staked ETH, bullish whale activity, and expectations for the approval of an Ethereum ETF. These factors, coupled with the dominance of long-term holders and recent market movements, suggest that Ethereum may have a positive outlook in the near future. $ETH