Ethereum’s (ETH) Beacon Chain has defied critics with significant inflows since staking withdrawals were enabled on April 12th, with a staggering $7.7 billion worth of Ethereum deposited into the contract. Despite initial predictions of outflows following the Shanghai Upgrade, the Beacon Chain has become a core component of the next-generation Ethereum blockchain, Ethereum 2.0. It is a Proof-of-Stake (PoS) blockchain that coordinates validators, validates transactions, and finalizes blocks in the Ethereum network.
Lido’s stETH address “0xae7” has been the top depositor, accounting for over a third of the ETH locked in the deposit contract, with a lifetime deposit amount of over $15 billion. Following the enabling of stETH Unstaking, Lido’s deposit address has been transferred to a new address, “0xfdd,” which has already become the 4th deposit address since April, with a total deposit amount of over 214,000 ETH, or over $386 million, despite only being active for the past three days. Frax, a stablecoin project, is one of the notable players in this space. It offers a product called frxETH, allowing users to stake their ETH and receive liquid-staked ETH tokens (sfrxETH) in return.
Although Frax ranks 14th on the leaderboard of depositors, their total stake of 72,400 ETH since April 1st represents a significant portion of their total Frax ETH supply, accounting for 33.6% of the total frxETH supply of 215,000.
The growth of staking services and liquid staking tokens provides users with more options for earning rewards on their ETH holdings, and it is a positive development for the Ethereum ecosystem. It is a testament to the popularity of Ethereum 2.0 and the Beacon Chain, which offer a more sustainable and efficient network for decentralized applications.
However, according to well-known cryptocurrency analyst Michael Van de Poppe, ETH’s price resembles a bear flag more than a consolidation pattern. He believes that the Relative Strength Index (RSI) is higher on ETH, and when combined with the chart pattern, it is likely that ETH will experience another leg down, making it more probable than Bitcoin (BTC). Van de Poppe points out that for him to change his mind about ETH, the resistance level that needs to be broken is $1,867. However, if the candle closes below $1,735, there is a high likelihood of continuation toward the range of $1,675 to $1,712, with the lower $1600 as the next potential support level.
Despite the current short-term uncertainty in the cryptocurrency market, the long-term outlook for Ethereum and the broader digital asset industry remains positive. However, while it can be challenging to predict short-term price movements, Michael Van de Poppe’s analysis suggests that the short-term outlook for Ethereum may be bearish.
Sources: Arkham Intel on Twitter, TradingView.com
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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