Are you keeping an eye on Ethereum and its staking network? The latest data reveals some interesting trends that could impact the price of ETH in the near future.
On April 16, a whopping 22,297 unique wallets met the 32 ETH requirement to join the Ethereum staking network. However, since then, the number of new entrants has plummeted significantly. As of May 12, only 704 unique addresses chose to join the Ethereum staking queue, marking a 98% decrease from the peak in April.
What could be causing this sharp decline in staking inflows? Some speculate that fears of a potential crypto market crash following the Bitcoin halving on April 20 may have spooked investors into reducing their ETH investments.
While Ethereum reaching 1 million validators is a significant milestone for the network’s future decentralization, the continuous drop in new entrants could potentially have a bearish impact on ETH’s short-term price movement.
As of writing this, Ethereum is trading around $2,960, but the steep decline in staking inflows raises concerns about a possible breakdown below the $2,900 level in the near future. The lower-limit Bollinger band indicator suggests that Ethereum bulls may find initial support around the $2,847 range.
Stay tuned to Extreme Investor Network for more updates on Ethereum’s staking network and how it could affect the price of ETH in the days to come. Don’t miss out on valuable insights and analysis from our team of experts in the world of trading and investing.