6,400 Ethereum Mystery Move Sparks ETH Rally Talk Pre-ETF Nod

Christian Encila

11 months ago

2 mins read

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As more and more investors choose to keep their Ethereum assets frozen rather than actively selling them, the Ethereum ecosystem suddenly finds itself severely short of supplies. The second-largest cryptocurrency in the world could face serious challenges going forward depending on the planned behavior of market players.

Ethereum Supply Tightens Up

The first sign of this supply gap came earlier this month when an unknown market player moved a staggering 6,400 Ethereum to the Beacon Chain depositor wallet. The Beacon Chain, which checks recently added blocks to the network, is the basis of Ethereum 2.0 This big action suggests that investors might be inclined to lock down their ETH holdings instead of aggressive trading.

🚨 6,400 #ETH (20,015,930 USD) transferred from unknown wallet to Beacon Depositorhttps://t.co/wrOSlw2LaR

— Whale Alert (@whale_alert) July 11, 2024

According to cryptocurrency analysts, this is a blatant sign that a lot of Ethereum users are optimistic about the network’s long-term prospects. They are effectively removing a sizeable chunk of the ETH supply from the market by locking up their coins on the Beacon Chain, which might have a big impact on the asset’s price dynamics.

Following this trend, Glassnode data shows that Ethereum 2.0 fresh deposits have recently grown. Key to the next Ethereum 2.0 update, this measure monitors the number of users staking at least 32 ETH to participate in the rewards system on the network.

ETH price feeling the pressure on the 24-hour timeframe. Source: Coingecko

The rising staking activity suggests that the community is rather optimistic about the future of the Ethereum ETF, which is fast approaching.

Bullish Momentum Surge Ahead

An examination of Ethereum’s exchange inflow and outflow data provides even more evidence in favor of the bullish story. Santiment claims that the network’s exchange outflow has been greater than its influx, which suggests a lessening of sell-side pressure.

Ethereum is now trading at $3,112. Chart: TradingView

When ETH is being taken from exchanges more than being deposited, buyers are certainly in power. Together with the rising amount of locked-up coins, this dynamic could provide the perfect environment for an ETH price surge .

The report also predicts that Ethereum would be set to surpass Bitcoin in the fourth quarter of 2024, per normal altcoin market cycle pattern. This prediction acquires further weight from the Bulls and Bears indicator from IntoTheBlock, which now shows bullish against bearish dominance for Ether.

Market expert Benjamin Cowen believes Ethereum could reach $3,300 in the next weeks or months and might possibly hit $3,500 should buying demand overcome selling pressure.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.