2021-03-16 07:58:40

Ethereum 2.0 wallet hits $6.5 billion amid ETH price imminent bounce to $2,000

  • The Ethereum 2.0 wallet currently holds over 3.5 million ETH.
  • Ethereum shows long-term growth in terms of wallet activity, hinting at a stronger on-chain front.
  • Support at the 200 SMA on the 4-hour chart stopped losses leading to an ongoing bounce.
  • Failing to close the day above $1,800 will see overhead pressure increase appreciably.

Ethereum 2.0 deposit wallet has hit a historical high of roughly 3.5 million Ether according to dappRadar, a platform that tracks smart contracts. At the prevailing exchange rates, the tokens make up a value of $6.5 billion. Meanwhile, Ethereum address activity signals long-term growth, which is a relief, especially with the recent price drop to $1,700.

Ethereum investors show their support for incoming protocol

Ethereum investors are not relenting with the support for a Proof-of-Stake (PoS) consensus algorithm. Only 524,288 ETH was the threshold for launching the Beacon Chain, beginning the process leading to ETH 2.0. However, investors have staked massively surpassing this figure by more than six times. Justine Drake, one of the most prominent Ethereum researchers, said earlier via Twitter that the community is demanding the PoS.

The support for Ethereum 2.0 has not impacted the growth of the current Ethereum Proof-of-Work protocol. According to data by Santiment, the network exemplifies a long-term growth pattern, particularly with a persistent uptick in addresses interacting on the platform. On the other hand, Bitcoin has seen a significant drop but is holding around 1.1 million addresses per day.

Ethereum setting the recovery pace

Ethereum dived to $1,700 after hitting a barrier at $1,945. The 200 SMA reinforced the support at this level. A rebound has ensured with the upside testing the hurdle at the 50 SMA on the 4-hour chart. Price action toward $2,000 is expected to come into play as soon Ether cracks the immediate seller congestion zone.

Moreover, ETH is trading within an ascending parallel channel. The lower boundary also cemented the anchor at $1,700. The action above the channel’s middle boundary will bolster the price significantly toward $2,000.

ETH/USD 4-hour chart

Looking at the other side of the fence

Ethereum is not out of the woods yet based on the bearish impulse of the Moving Average Convergence Divergence (MACD). If the indicator’s negative gradient remains unchanged, losses back to $1,700 will come into the picture. Besides, trading under this level may trigger colossal sell orders pushing Ethereum toward $1,400.

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