Analysts are bullish on Ethereum as 12 million ETH is staked on the consensus layer


  • 12 million ETH tokens have now been staked on the consensus layer, hitting a key milestone for the altcoin. 
  • Proponents believe that a high volume of staked Ethereum is a bullish sign and could fuel a rally in the altcoin. 
  • Ethereum's revenue increased 46% in Q1 2022 as the altcoin gained popularity among users. 

Ethereum price volatility has increased uncertainty among investors. However, analysts are bullish on Ethereum and predict a rally in the altcoin. 

Ethereum price could wipe out its losses on one condition

Ethereum consensus layer now has 12 million ETH tokens staked on it. A rise in the staked supply of Ethereum reduces its circulating supply. A reduction in circulating supply is bullish for the altcoin's price. 

After witnessing volatility in its price, Ethereum is on track to recover its losses. Based on data from Glassnode, the exchange netflow volume is at 6,244 ETH. This represents a bullish bias among investors. 

@venturefounder, a crypto analyst and trader, commented on Ethereum's net exchange flow. 

Proponents believe investors are bullish on Ethereum because of the much-anticipated merge. The consensus layer deposit contract recently surpassed 12 million ETH tokens, accounting for over 10% of ETH supply in circulation. 

$34 billion in ETH is now pulled out of Ethereum's circulating supply, and over 376,000 validators contributed to the same in transactions worth 32 ETH or more. Analysts believe Ethereum price could overcome a 55-day SMA, a key level to confirm bullish bias. 

Analysts have identified $3,018.55 as a critical barrier for bulls attempting to make a recovery. If Ethereum price drops below $2,800, analysts have set a downside target of $2,695.79. 

FXStreet analysts have identified a buying spree among Ethereum whales, scooping up ETH off of exchanges in a bullish move. 

 


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