- Staking withdrawals went live on Ethereum on April 12
- Despite a spike in its circulating supply, ETH price continued to gain.
NEW DELHI (CoinChapter.com) — Ethereum’s Shanghai hard fork went live on April 12, enabling staked ETH withdrawals for users. Hours after the upgrade went live, the number of validators exiting the Ethereum blockchain rose sharply before calming.
Per data from blockchain intelligence and analytics platform Metrika, the circulating ETH supply rose by more than 132,000 tokens in just 14 hours. In the same timeframe, users withdrew nearly 160,670 ETH tokens.
Furthermore, Ethereum’s validator count dropped sharply once the Shanghai upgrade went live at epoch 194048. Additionally, four exiting validators and 11 active ones were slashed, meaning a significant amount of their staked tokens were removed.
Additionally, the number of active validators on the blockchain declined by 17,931. Nearly 3,660 validators are likely to make withdrawals. One of the largest withdrawals was more than 94,100 ETH tokens by an address with the label Lido: Withdrawals Manager.
The address has a current balance of 97,981 ETH tokens.
ETH Price Breaks Above $2,000
Meanwhile, ETH price action allayed fears of increased token supply damaging the token’s price rally, which saw the Ethereum token rise more than 46% from March 10’s low of $1,370. Moreover, the uptrend helped the Ethereum token break above $2,000 for the first time since Aug 2022.
ETH price also broke above a multi-week ascending trendline resistance, which could help attract more buyers to the market. As a result, ETH price might rise to target resistance near $2,070.
Breaking and consolidating above the immediate resistance level might help ETH price rise to $2,230 before downside corrections pare gains.
Though the staked ETH withdrawal has not affected the Ethereum token’s price action, it might be possible that stakers start booking profits once ETH price moves upward. The sudden inflow of ETH tokens in the market could pull down Ether prices.
Additionally, the relative strength index of ETH is nearing the overbought threshold, clocking at 69.24 on the daily charts. Once the RSI rises above 70, it will become overbought. Traders often consider overbought RSI levels a signal of an impending trend reversal and, thus, a sell signal.
As a result, ETH price might drop to its support level near $1,900. Breaching the immediate support level might force the Ethereum token price to test its 50-day EMA (purple wave) support near $1,760 before recovering.
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