Chart analysis proves: Ethereum could outperform Bitcoin
In recent weeks, optimism has been building around the release of Ethereum 2.0. It may well be more than pre-ipo hype and then later sale (” buy the rumours, sell the news “). At least that’s what the latest data from the mystery study suggest. As the analytics company explained on Twitter yesterday, the number of ETHs or more Ethereum wallets is approaching the 120,000 wallet standard. With the launch of Ethereum 2.0 phase, the number of Ethereum wallets with 32 ETHs or more has reached an all-time high. Ethereum is about to form a “golden cross” on the ETH/BTC chart, which could indicate a significant increase in ETH prices.
According to the current requirements of
phase 0, staking nodes, which will replace the miners of the Proof of Work
(PoW), must have at least 32 ETHs permanently in order to validate transactions
on the Proof of Stake (PoS) blockchain. In this sense Arcane Research states:
Are investors getting ready for Ethereum
staking? Data from @nansen_ai shows that almost 120,000 Ethereum wallets are
ready for staking. This number has grown by 13% over the past year.
The statistics presented by Arcane Research
thus indicate a trend towards a massive accumulation of Ether (ETH) in order to
operate a validation node and benefit from staking rewards. These depend on the
amount of staked ETH and are initially estimated at 5 to 10% annual returns,
provided that between 3 and 10 million ETH are staked.
Experts also expect that the number of staked ETH will continue to increase over time, so that the accumulation trend could continue not only before the launch of Ethereum 2.0, but also afterwards. This would lead to a significant shortage of the ETH in circulation, which in turn could trigger a considerable increase in price.
The accumulation trend has caused the
ETH/BTC chart to show a bullish formation for Ethereum. Josh Olszewicz, a
respected analyst, recently described that ETH is preparing for a big move in
the trading chart against Bitcoin. In a tweet, Olszewicz pointed out that for
the first time since mid-2018, the Ichimoku cloud is trending bullish and is on
the verge of a “golden cross” confirmation.
The indicator is widely used and recognized
in the trading scene and can make statements about trend direction and
strength, as well as support and resistance and buy or sell signals. In
addition, Olszewicz explained that the key resistance is at 0.025. If this
falls, he expects a significant movement of the ETH price against BTC up to
0.035. According to him, this could happen very soon.
Author : Jake Simmons