- Ethereum ETFs post $10.8 million in net inflows.
- Ethereum's annual inflation rate rose to 0.58% after its total supply increased by over 210,000 ETH in the past four months.
- Vitalik Buterin confirms 200 ETH sale was for a charity donation.
- Ethereum could rally toward its yearly high of $4,093 if it breaks above the ascending triangle's resistance.
Ethereum (ETH) is down 0.7% on Thursday following three consecutive days of net inflows across ETH ETFs. Meanwhile, ETH's annual inflation rate has continued trending upward amid signs of a potential bullish reversal.
Daily digest market movers: ETH ETF inflows, inflation rate, Vitalik Buterin's donation
Ethereum ETFs recorded net inflows of $10.8 million on Wednesday, stretching their inflow streak to three days. BlackRock's ETHA and Fidelity's FETH saw inflows of $16.1 million and $6.6 million, respectively, while Grayscale's ETHE posted outflows of $16.9 million.
Ethereum's annual inflation rate has increased to 0.58% after its net supply grew to 120.27 million ETH in the past 30 days, according to data from Ultrasound.money.
Since the Dencun upgrade in March, Ethereum's supply has been in an uptrend, considering fewer transactions on the Main chain reduced ETH's burn rate, which was meant to offset new issuance. This is evidenced in ETH's supply change in the past 30 days. The network recorded 77,100 ETH issued against 19,300 ETH burned, increasing Ethereum's total supply by 57,700 ETH.
ETH supply growth
Between April and August 2024, Ethereum's total supply has grown by more than 210,000 ETH. A sustained uptrend in supply growth could negatively impact ETH's price if demand declines or stays constant.
Ethereum co-founder Vitalik Buterin transferred 200 ETH worth about $532,000 to the Kraken exchange in the past 24 hours. While many earlier interpreted the transfer as profit-taking, Buterin later clarified that the 200 ETH was a donation to charity. Buterin received the funds from the sale of animal-themed meme coins he received in the past year.
Charity donation done, covering all animal coins from the past year or so!
— vitalik.eth (@VitalikButerin) August 15, 2024
That said, I appreciate it if coin holdings just get allocated to the charities directly
It's 2024, we can start doing more sophisticated public goods fun-ding, eg. see https://t.co/8ZVhwkVwLy pic.twitter.com/RQ1ThdLCYL
ETH technical analysis: Ethereum could rally if ascending triangle continues
Ethereum is trading around $2,650 on Thursday, down 0.7% on the day. In the past 24 hours, ETH has seen over $32 million in liquidations, with long and short liquidations accounting for $24.51 million and $7.55 million, respectively.
On the 4-hour chart, ETH appears to be following an ascending triangle since the market dip on August 5. This signals a potential reversal on the horizon.
ETH/USDT 4-hour chart
The 200-day Simple Moving Average (SMA) has served as a resistance since July 28, when the 50-day SMA moved below it in a Death Cross pattern.
If ETH continues posting higher lows and breaks above the upper resistance line around the psychological level of $3,200, it could rally toward its yearly resistance of $4,093.
This move is supported by the Relative Strength Index (RSI), which is attempting to move above its moving average. If the RSI successfully crosses above the moving average, ETH could see a brief rise in the coming days.
Meanwhile, on the daily chart, ETH faces a key trendline resistance that suggests its price could decline to the $2,000 to $2,200 range in the coming weeks. ETH has previously posted similar moves from August 2022 to November 2022 and July 2023 to August 2023.
ETH/USDT Daily chart
A daily candlestick close below the lower rising trendline could trigger a heavy correction for ETH.
Ethereum development FAQs
After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.
Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.
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