Ethereum Consolidates Above $1700 as ETH Stake Unlock Approaches
Ethereum is currently consolidating above the $1700 mark. Although the upcoming ETH stake unlocks in which over $28 billion worth of ETH will enter the circulating supply, there is a rise in the open interest in ETH alongside declining ETH supply on the crypto exchanges, according to DappRadar.
The Ethereum blockchain is set to unlock 14% of its total supply between the 3rd of April and the 10th of the same month. This event comes after the blockchain’s Shanghai upgrade was completed successfully.
According to Fxstreet, the ETH token is worth over $28 billion and is the first significant upgrade since the Ethereum blockchain transitioned into a proof-of-stake system in 2022. The unstaking event will take place in the entirety of April and will allow validators on the blockchain who stake their ETH tokens to withdraw their stakes.
On the other hand, Crypto Twitter sounds alarms indicating investors should not be swayed by over-the-board news from the token event. The crypto enthusiasts on the platform are awaiting panic selling and uncertain market conditions to shed ETH’s price close to the event.
The downside of the token can be traced at $1,400 and $1,500 in the case of a bear market event. According to the CEO of Galaxy, Mike Novogratz, ETH, and BTC are the largest cryptos by market cap, and a vast majority of crypto wealth is stored in the two tokens.
The supply of ETH has been at an all-time low since 2015, with the collection hovering at 10.31%. According to Crypto Intelligence Tracker data, the amount of ETH in exchange reserves is declining compared to the supply before the Shanghai upgrade.
Weekly Price Chart Analysis of ETH
In the last few weeks, the price of ETH was held by crucial support levels ranging from $1k to $1.4k. ETH’s breach past the $1.4k is the sole reason it trades over $1.7k. In the past weeks, the price had formed a pullback targeting the triangle’s upper trendline before the price broke the 50-day moving average.
In addition, the price is also trading above the 50-week moving average, which is a crucial level to maintain because it sets up the general bias for ETH in the long term. The outlook on ETH remains bullish; however, things could melt down in the week as the sector’s volatility remains high.
As for resistance, the token is currently facing heavy resistance at $2k. If the price can break this barrier, we could see the price increase to over $2.3k, indicating a long-term bull run.
The 4-Hour Chart Analysis of ETH
The recent price action by the token needs to give a clear trajectory of the next market movement. The crypto token is currently consolidating on the 4-hour chart without providing any solid indications of its next move after finding crucial support in the mid-boundary of the ascending channel.
The price chart also indicates that the token faces basic levels of resistance and support in the mid-boundary of the ascending channel at $1.72k. If the price experiences a further decline, we could see a dip to the $1.5k mark, which will signal a long-term bearish bias.
The token has seen some fluctuation regarding the RSI, with the value showing a neutral bias as investors hold off investments waiting for the important unlock event. The MACD, alongside the on-chain indicators, are bullish.”