Ethereum fell as low as $2,100 this week before recovering and adding an impressive 25% from the August 2024 low. While there is confidence that prices will continue to rise and break through $2,800 and even the psychological round figure of $3,000, other market-related events could slow the bulls.
Ethereum network releases over 143,000 ETH
After token activations DataHundreds of thousands of ETH are queued up to be withdrawn today. On-chain data shows that validators are preparing to withdraw 143,000 ETH worth nearly $350 million. Another batch of 212,000 ETH will be available for trading in the coming days, which could further increase price pressure.
According to CoinMarketCap, there are over 120 million Ethereum in circulation as of August 9. Data. Since Dencun, the network has been inflationary, meaning that not as many coins are burned as before.
Validators must stake at least 32 ETH and ensure that their nodes maintain high availability of close to 100%. At the same time, validators are not allowed to engage in prohibited activities such as banding to approve invalid transactions, according to the network’s consensus rules.
Failure can result in slashing, where a portion of their stake is withheld as a penalty. However, since they must commit to keeping the network decentralized, they receive a portion of the annual staking yield, while also having the opportunity to approve a block of transactions and receive rewards for doing so.
The ETH expected to hit the market will be the earnings from their staking activities. This unlocking is different from block rewards, which are distributed approximately every 13 seconds.
Even though the market is expecting a supply surge, Token Unlocks analysts point out that these withdrawals do not necessarily mean they will be liquidated, but if they are sold, the recovery will likely be slow.
Will the bulls gain the upper hand and push the price above $3,000?
There is reason to be concerned. In the past, Token Unlocks analysts have observed that prices tend to drop when the Ethereum network releases such a large amount of tokens in a short period of time. Over the past three months, unlocks of between 150,000 and 220,000 ETH have coincided with price drops.
Looking at the daily chart, Ethereum is recovering. Although the downtrend continues after the unexpected drop to as low as $2,100 earlier this week, the recovery has been decent.
The immediate liquidation limit is $2,600. If buyers continue and confirm the gains from August 8, ETH prices could rise, soak To the expected floodand test again $3,000.
Featured image by Canva, chart by TradingView
