• Ethereum price benefits from bullish view after the amount of Ethereum staked on the ETH2 network surpassed 10 million milestone.
  • Transaction fees on the Ethereum network dropped to mid-2021 lows, fueling user demand.
  • Analysts predict a breakout in Ethereum as the volume of ETH tokens burned skyrockets. 

Ethereum price struggles to recover against the rising volume of ETH tokens deposited in the staking contract. Nearly 2 million Ethereum tokens have been burned so far, fueling a bullish outlook among investors. 

Ethereum price could breakout in response to burn

Ethereum price’s bullish outlook comes after the total volume of Ethereum deposited in the ETH2 staking contract exceeded 10 million. The explosive growth in volume promises a certain amount of ETH in constant staking rewards for investors. 

Based on data from crypto intelligence platform IntoTheBlock, over 65,910 unique Ethereum addresses contributed to the ETH staked, which totals 8.4% of the altcoin's circulating supply.

Interestingly, nearly 2 million ETH tokens have been burned since the London hard fork. The altcoin's supply is shrinking with the reduction in the number of ETH in circulation and the burn. Historically, this fuels a bullish breakout in the altcoin's price. 

Proponents have noted a drop in transaction fees on Ethereum's network. The cost of transfer has dropped to 2021 lows on the altcoin's blockchain. Low transaction costs attract users and fuel demand for the altcoin among investors. 

Analysts have evaluated the Ethereum price trend and predicted a bullish breakout. @DaCryptoGeneral believes the Ethereum price trend could be bullish or bearish, depending on the direction in which the symmetrical triangle breaks out. 

An upside breakout could push the Ethereum price to $5,500 – the downside target is $1,700. 

Ran NeuNer, cryptocurrency analyst and founder of Crypto Banter, believes that Ethereum is teasing us with a potentially massive breakout. Post the bloodshed; the largest altcoin is leading the way in the ongoing recovery of cryptocurrencies. 

Ethereum could break out of the daily descending resistance trend line from November 2021 in a new price rally, according to NeuNer. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP