Ethereum (ETH) continues getting a keen eye as crowd awareness, and interest rose substantially after the second-largest cryptocurrency crossed above $2,500, as acknowledged by crypto analytic firm Santiment.
The recent price surge in the crypto market made ETH’s price surge past $2,600 following months of consolidation, given that low volatility had become the norm. Ethereum was hovering around $2,500 during intraday trading, according to CoinMarketCap.
On the other hand, ETH 2.0 continues gaining steam because the number of accounts recently topped 4,000. Moreover, the number of Ethereum 2.0 validators recently surpassed 200,000.
This deposit contract went live in December 2020 and sought to transit the current proof-of-work (POW) framework to the proof-of-stake (POS) consensus mechanism.
Therefore, the increased bet on the future of the Ethereum blockchain comes as the next major upgrade in the network, the London hard fork is set to go live on August 5.
The surging deposit rate, which typically reduces the supply of Ethereum on spot exchanges, is also set to complement the unique features billed to be introduced by the London hard fork.
Ethereum looks good on-chain
According to Lex Moskovski, the CIO at Moskovski Capital:
“Ethereum looks good on-chain, indeed. 1. Supply on exchanges has been drained 2. Supply in smart contracts is ever-increasing 3. Short-term holders stopped getting rekt 4. Supply staked in ETH 2.0 validators is increasing.”
These factors could trigger a supply squeeze, which is a bullish sign.
Is the $3,000 level next?
According to IntoTheBlock’s IOMAP indicator, Ethereum faces two key levels of on-chain resistance on its path to $3,000 once again.
This is because 1.19 million addresses bought 2.03 million ETH between the $2,598 and $2,753 levels.
Time will tell how Ethereum shapes up moving forward, given that its perpetual swaps open interest recently hit a two-month high.
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