ETH Price Headed To New Highs As $117 Billion Of Total Supply Now Locked In Staking

Ethereum continues trading in lockstep with Bitcoin as the top cryptocurrency approaches its all-time high. In the last 24 hours, Ethereum has gained by 4.93% and, as of 11:31 GMT+3, was trading at $3690.76. 

Ethereum’s build-up in bullish momentum comes as it approaches its all-time highs. It is mainly driven by shrinking supply relative to the demand. The latest data shows that the amount of staked Ethereum has hit an all-time high of $117 billion, or 26% of the total supply.  This also comes when the amount of Ethereum locked in smart contracts also hits all-time highs of 36% of the total supply. This means the amount of Ethereum available for actual trading is shrinking.

#Ethereum‘s staking rate just hit a new ATH of 26.32%!

At $3,700 per #ETH, that’s over $117 billion staked. pic.twitter.com/uoUf7mr1CG

— Leon Waidmann | On-Chain Insights🔍 (@LeonWaidmann) March 5, 2024

Just Two Months Away To ETFs

Such metrics impress investors, especially now that expectations are high for an Ethereum ETF.  Most analysts, even the big banks, believe the Ethereum ETFs will be approved before May 23rd this year, the hard-capped date that the SEC has been given to either approve or reject the ETF. Approval means that under current Ethereum metrics, institutional money will be chasing a small supply, a factor that could send Ethereum rocketing to new highs. 

Investors are also excited that  Ethereum has come close to hitting its all-time highs way before the big ETF news. Add to that the ETFs will come after the Bitcoin halving, and it’s easy to see why money flows more into Ethereum. Investors expect the combination of ETF news and the momentum Bitcoin will give to the market to push Ethereum to prices over $10k. Some analysts even project $20k or more prices for Ethereum.

8-Days To Dencun Upgrade

Ethereum is also gaining momentum thanks to the upcoming hard fork only 8 days away. With the broader market already bullish, investors are excited that the hype around this upgrade could see Ethereum push through its all-time highs within a week. This puts the potential for Ethereum to hit prices above $20k way into perspective if the ETFs are approved. 

Overall, Ethereum is recording solid and steady price appreciation thanks to declining supply relative to demand and a series of upcoming big news, such as the Dencun hard fork that is only 8 days away and the ETFs coming up in May this year. 

Ethereum Making Higher Lows As Bulls Take Control 

Ethereum is on an uptrend and making higher lows along a bullish channel.

For the last 24 hours, Ethereum has been trending higher, with minor dips that have led to higher prices. This indicates that bulls are in control and that every little dip in the price is being bought up.

The latest dip saw Ethereum drop to $3656, but buyers have bought it up, and upside momentum is rising. With this bounce off the $3656 dip, Ethereum now has some resistance at $3736. If bulls gain enough momentum and push Ethereum through the $3736 resistance, then prices above $4k could be hit in the day. 

However, two scenarios could play out if buying volumes drop within the day and bulls cannot push Ethereum through $3736. The first is a possible consolidation between $3736 and $3656, now a key support level.

On the other hand, if short sellers take control and push Ethereum through the $3656 support, then prices around $3466 could come into focus. 

Ethereum Price Prediction – Why $4k Could Be Hit Today

While there is a chance that Ethereum price could consolidate or turn bearish, the odds are that bulls will remain in control today. That’s because, from a look at Ethereum price action, it has already bounced off a support level, and buying volumes are rising. This indicates that investors are buying every tiny dip with expectations of much higher prices. 

At the same time, bulls are firmly in control across the market. Once Bitcoin crosses the $69k mark, which could happen at any time now, FOMO could see more money flow into altcoins. As one of the altcoins with big news around the corner, Ethereum stands to benefit the most from FOMO.