With the Merge likely to happen next month, the Ethereum stacking contract has seen a spike in interest level. The move to proof-of-stake will see miners be flushed out in favor of validators who earn rewards for staking their ETH.
More investors want this too, which means there's a good chance that the price can go up even higher. Ethereum continues its upward trend as more and more people stake their coins.
The number of staked on the network has reached a new milestone, passing 13 million. The contract now stands at a whopping 13.308 million Ether, rising with each passing day.
The number of Ethereum staked accounts for about 11% of the total supply. The most recent data shows that 11% of Ethereum's available supply has been rendered unmovable for the foreseeable future. The scarcity has caused a price increase, and Ethereum has been able to test the $2,000 price mark for the first time in 2 months.
The anticipation around the Merge has turned into a "buy the news event". With the rise of Ethereum, more people are starting to invest in digital assets. As withdrawals are not possible for the next six months to a year after the Merge, the reduced market supply will continue to pump up prices.
With the current Ethereum price analysis, it seems like there are multiple instances of rejection for additional upward movement. The ETH/USD pair is expected to drop below $1,900 and then retest the territory of $1800 as support.
Ethereum has corrected by 6.6% since reaching a daily high of $2012. The price range between $1700 and 1800 is where Ethereum must maintain its value if it wants to avoid more falls.
Ethereum's price is currently trading inside a rising wedge, which some have deemed as being bearish for the currency. This trend suggests that there are fewer buyers in the market.
The bulls are in luck if they can prevent the price of Ethereum from breaking below important support at $1,700–$1800. If this happens, it is anticipated that the rising trend will continue after a temporary retreat with $2200 as its target.
But, if the price drops below this level, bears will have a chance to hit their target of $1350 – $1280. Ethereum has been upward since late July, when it hit a significant high of just under $1,600. The ETH/USD pair overcame previous resistance at $1,800 on Wednesday.
The price action continued with positive momentum upbeat until it reached resistance at $1,900, where there was a brief stabilization.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)