A large amount of ETH was withdrawn by validators, raising concerns about the security of Ethereum. As fewer coins are staked, the network becomes more vulnerable to attacks.
The Ethereum network is facing a major event as a large number of node validators withdraw a total of $320 million worth of ETH. This extraction raises concerns about network security and stability, especially as the highly anticipated Dencun upgrade is approaching.
The timing of this mass exodus is particularly noteworthy as the price of Ethereum has been trending upward. On March 13, the price of Ethereum reached a daily high of $4,078, representing a 15% increase for the month.
Withdrawals spark cybersecurity, price concerns
The massive withdrawal of ETH by validators has raised concerns about the security of Ethereum. As fewer coins are staked, the network becomes more vulnerable to attacks.
At the same time, ETH deposits on exchanges surged. According to data from Santiment, on March 11 alone, 62,096 ETH was deposited, indicating the growth of available supply on the exchange market. This increase in deposits is typically associated with bearish price action, indicating that investors are more willing to sell their ETH holdings.
ETH price faces downward pressure
The recent surge in ETH withdrawals by node validators and exchange deposits has raised concerns that the price of ETH may be facing downward pressure.
With over $320 million worth of ETH entering the market, there is likely to be increased selling pressure and a short-term price correction. However, given Ethereum’s strong fundamentals, including the upcoming Dencun upgrade, support long-term growth.
Despite these concerns, the price of Ethereum remains stable around $4,000, supported by bullish sentiment in the cryptocurrency market, which is influenced by factors such as institutional adoption and the popularity of DeFi applications.
Analysts predict ETH price to hit $5,000 despite resistance concerns
Using data from IntoTheBlock, analyst Ali Martinez found a large accumulation of buy orders within a supply area. Approximately 600,000 addresses purchased 1.63 million ETH in this area, creating a major obstacle to Ethereum's upward momentum.
Despite the challenges posed by the supply wall, market sentiment remains optimistic about Ethereum’s potential to reach $5,000. Some buyers may aim to break even, which could temporarily slow Ethereum’s upward momentum. However, it is widely believed that Ethereum has a strong chance of reaching the $5,000 mark.
Coinspeaker’s analysis of liquidation heatmaps supports this positive outlook. The tool predicts where significant liquidations are likely to occur, providing insight into potential market moves. According to data from HyblockCapital, a breakout of the $4,205 level could trigger massive liquidations. Conversely, a successful close above this level could pave the way for further price gains. ,
Ethereum’s price chart shows that there is still little resistance until $4,310 and there is a clear path up to $4,860, which could push it towards $5,000 on strong bullish momentum.
Funding rates, a key trader sentiment indicator, stood at 0.068%, and some aggressive short positions did not receive significant returns, indicating that traders in the market have strong bullish sentiment towards perpetual contracts, which may drive prices higher. Additionally, Ethereum has seen a significant upward trend in network activity, reaching 537,000 active addresses, reflecting growing interest and adoption. #以太坊 #节点验证
