ether (ETH) continues to see a surge in activity as the second largest cryptocurrency rose 4.35% to $ 3,517 during intraday trading.
At this level, ETH rests on significant support.
Market analyst Lark Davis explained:
“More than 10 million Ethereum were bought between $ 3,426 and $ 3,536. This is a very significant supply wall for support, but it is also important to note that above this level there is very little supply that is bought to be thrown off when the price starts. “
Ali Martinez reiterated that opinion, noting that Ethereum was nearing a breakout that could hit the $ 3,750 or $ 4,000 level. The on-chain analyst specified:
“Ethereum is only a few dollars away from the outbreak! The IOMAP shows that Ethereum only faces one supply barrier. Around 500,000 addresses had previously bought 8.50 million ETH between $ 3,475 and $ 3,577. Cutting through this resistance wall could push ETH to $ 3,750 or even $ 4,000. “
Meanwhile, the ether burned recently approached a billion dollar value as scarcity was introduced every time ETH was burned after being used in transactions. This feature was introduced by the London Hardfork or EIP 1559 upgrade that went live on August 5th.
Ethereum exit exchanges set a new record
According to data analytics firm IntoTheBlock:
“The net amount of ETH leaving exchanges has just hit a new record. Over $ 1.2 billion worth of ETH left the centralized exchanges yesterday. The last time more than $ 1 billion left CEXs, Ethereum rose 60% in 30 days. “
This is a bullish sign because it illustrates a culture of holding. In addition, a decline in the ETH supply on the stock exchanges generally correlates with a price increase.
On the other hand, the total blocked value (TVL) in the Ethereum 2.0 deposit contract achieved an all-time high of 7,683,394 ETH.
Ethereum 2.0, also known as Beacon Chain, went live in December 2020 and is said to increase scalability by making a transition to a. offers Proof of commitment (POS) consensus mechanism from the current Proof of Work (POW) framework.
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