Bitrabo Editorial
The price of Ethereum (ETH) has risen 4% this week and surpassed the $1850 resistance level with investors accelerating on DeFi staking. This has led Ethereum investors to hold out for more gains in the next few days. On-chain data reveals that the rise in staking activities among ETH holders is the primary factor behind the current rally in the cryptocurrency market.
Ethereum Staking Reaches New All-time High
The percentage of ETH circulating supply staked across the ETH 2.0 mainnet and DeFi smart contracts has reached a new all-time high. A recent blip on May 17 saw Ethereum investors stake an additional 430,500 ETH as of May 22. When investors stake at this rate, the recent ETH price surge could evolve into a prolonged bull rally.
ETH is Still Undervalued
The decline in the ETH Network Value to Transaction Volume (NVT) ratio reveals that it is currently undervalued. The Ethereum NVT ratio fell 49% from 92.92 to 46.64 between May 20 and May 22. Typically, strategic investors use the NVT ratio to assess the relationship between a cryptocurrency’s market capitalization and the underlying transactional activity.
When the NVT ratio drops considerably, as observed above, it indicates that the asset is still undervalued and could be due for more price pumps in the future.
ETH Price Prediction: $2,000 is Within Reach
According to IntoTheBlock’s In/Out of the Money Price Distribution data, ETH could soon reclaim the $2,000 milestone. However, Ethereum may face difficulties breaking above the $1,925 resistance level. If they do break through, it could inadvertently lead to a pullback as 1.41 million investors holding 1.31 million ETH may sell when they break even around $1,925. Nevertheless, if the bullish momentum strengthens, those holders could turn bullish, and ETH can rally toward $2,100.
The bullish Ethereum price prediction may be invalidated if ETH drops below $1,800 again. However, the 3.23 million investors holding 4.86 million ETH at an average of $1,800 can offer some support. If this support level cannot hold, ETH may drop to $1,750.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your research and consult with a professional before making any financial decisions.