Bitrabo Editorial
Recently, Ethereum experienced a dip to $2,100 before a significant 25% recovery from August 2024 lows. Despite optimism for further growth, including surpassing $2,800 and potentially hitting $3,000, various market factors could impede bullish momentum.
Large ETH Supply Unlocked on Ethereum Network
Reports from Token Unlocks reveal that over 143,000 ETH are scheduled for withdrawal imminently. Validators are gearing up to access 143,000 ETH worth almost $350 million, with an additional 212,000 ETH expected to enter the market soon, potentially exerting downward pressure on prices.
As of August 9, Ethereum’s circulating supply exceeds 120 million coins, marking a shift to an inflationary model post-Dencun, differing from the previous burning mechanism.
Validators are required to stake a minimum of 32 ETH and maintain high node uptime close to 100%. Adhering to the network’s consensus rules is crucial, prohibiting participation in illicit activities like approving invalid transactions. Violations can lead to slashing penalties, but by ensuring network decentralization, validators earn part of the staking yield annually and the chance to validate transaction blocks for rewards.
The impending ETH influx originates from staking rewards, distinct from regular block rewards issued every 13 seconds. Token Unlocks analysts speculate that while these withdrawals may not automatically translate to liquidation, if executed, selling pressure would likely result in a gradual price recovery.
Potential for Bulls to Drive Prices Beyond $3,000
Historically, significant token unlocks on the Ethereum network have correlated with price stabilizations, or drops, as observed by Token Unlocks analysts. Over the past three months, unlocks ranging from 150,000 to 220,000 ETH corresponded with price corrections.
Despite a recent dip to $2,100, Ethereum’s recovery is evident. Although a downtrend persists following the earlier drop, the bounce-back has been considerable.
The critical support level lies near $2,600, and if buyers manage to sustain momentum from August 8 gains, Ethereum prices could surge, absorbing the anticipated supply wave and potentially retesting the $3,000 mark.