While 2022 will be a negative year for the cryptocurrency market, Ethereum recorded a significant upgrade. The network has migrated to proof-of-stake through Merge. A lot has changed for Ethereum since then. Despite garnering massive backlash, the network stuck to its decision and moved forward. It was recently revealed that there was a 37% drop in supply on exchanges, which is considered a bullish sign for ETH.
Santiment stated in September that before the Merger, exchanges had a total of 19.12 million ETH worth $31.3 billion. However, these platforms now have only 13.36 million ETH worth $19.7 billion. This means there are fewer assets to trade or even sell.
But this decline may also be linked to the community’s desire to move its funds to self-hiding. Confidence in cryptocurrency exchanges dwindled after the FTX crash.
In addition to these, an increasing amount of ETH is currently being staked. Currently, 16 million ETH, or 14% of the supply, has been staked on the Beacon Chain. This represents a large amount equal to almost $25 billion, which will gradually become liquid after the Shanghai hard fork. The Shanghai hard fork is expected to take place in March.
Can Ethereum Rebound to $1.7K?
equivalent bitcoinLeaving behind , ETH has increased by 3.27% in the last 24 hours. The asset rose from a low of $1,501.80 to a high of $1,562.03. At the time of writing, the second-largest cryptocurrency is trading at $1,558.45.
The short-term price chart of ETH shows that the asset is in an uptrend targeting $1,600. While this is achievable considering it’s pretty close to the area, the community estimates over $1,700.
Additionally, the Relative Strength Index [RSI]revealed that buyers are in the ETH market when the asset reaches the overbought zone.