Although Ethereum declined in June – falling to a low range between $1,550 and $1,650 – the amount of ETH staked on the staking contract continued to rise. According to on-chain data received on Monday, the amount of ETH staked has risen to 42.25 million, a new high.
Staked Etheruem rises to a new high
Data from Coinbase shows that approximately 35 percent of ETH is now staked, effectively removing this proportion of the cryptocurrency’s supply from active circulation.
The fact that investors continue to stake their ETH as the price recovers indicates that the amount of ETH available for long term selling is decreasing. Therefore, the current structure is particularly favorable for ETH from the supply side in the medium and long term.
Over the past month, ETH has made modest gains to the tune of 2.7 percent, trading at $1,908 as of Monday. The following chart shows a strong increase in staked ETH from approximately 37 million ETH to 42.25 million ETH.
Since more than one-third of the supply is now staked, even if demand remains unchanged, the decline in the amount of ETH available for trading in the market could make it easier for the price to move higher.
That said, staking inflow total remains highly volatile, with the latest value being close to 6,892 ETH. As much higher staking inflows were recorded in previous periods, it means that new staking inflows have started to weaken.
As a result, with demand also weakening in the short term, the market is seeing a more sideways price movement.
Indicators point toward a rally for ETH
While recent price action suggests ETH is struggling to break through the critical $2,000 price level, a greater number of technical and on-chain indicators point toward a massive rally for the 2nd-largest cryptocurrency by market cap.
On Sunday, The Coin Headlines reported that despite a negative cumulative volume delta, ETH is setting up for a strong bullish trend. Similarly, on August 12, an analyst predicted that ETH is likely to see a quick 60 percent rally, which could catapult it past $3,000.
