- Ethereum tokens that are out of circulation hit a new all-time high of 18.87 million, following the Shapella upgrade.
- Spike in volume of Ether out of circulation signals the likelihood of recovery in ETH and a reduction in selling pressure on the altcoin.
- Experts believe Ethereum price could hit the bullish target of $1,925 once it begins its recovery.
Ethereum tokens being pulled out of circulation have hit a new all-time high based on data from crypto intelligence tracker Nansen. Following the Shapella upgrade, Ethereum locked out of circulation hit 18.87 million ETH.
Also read: Meme coin traders hunt for the next PEPE, ape into low market cap projects for gains
Ethereum locked out of circulation hits record since Shapella
Ethereum recently wiped out all its gains since the Shapella upgrade. Based on data from crypto intelligence tracker Nansen, total ETH locked out of circulation, which includes staked ETH, the altcoins deposited to the contract but not validated yet and the rewards on the contract have together exceeded 18.87 million, a new all-time high.
Ethereum deposits and withdrawals
This is a key metric since Ether that is pulled out of circulation reduces the selling pressure on the altcoin. It indicates decline in exchange wallet reserves and supports a bullish thesis for the asset.
Will Ethereum recover its losses?
A spike in ETH locked out of circulation fuels the thesis for Ethereum price recovery. Experts believe the altcoin is primed to recover its gains. Interestingly, ETH price has nosedived below $1,850, reducing the percentage of holders profitable at the current price level. This is likely to discourage traders that are sitting on unrealized losses, from shedding their ETH holdings.
As seen in the price chart below, Ethereum is currently in a short-term uptrend that started in December 2022. The altcoin hit a peak at $2,138 before receding to critical support at $1,851. If buying pressure sustains and volume of ETH locked continues climbing higher, Ether is likely to recover and make a comeback above $1,925, a level that coincides with the 10-day Exponential Moving Average (EMA).
ETH/USDT 1D price chart
Ether price is steady above the 50-day and 200-day Exponential Moving Averages at $1,829 and $1,654 respectively. Bullish targets for Ether are resistance at $1,925, and $2,023, followed by the April 2023 peak of $2,138. A decline below the 50 and 200-day EMAs could invalidate the bullish thesis for Ethereum.
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
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.