Ethereum sees increased attention as it approaches the Merge that will introduce the ETH 2.0 transition. Specifically, market players remain curious to witness how the Merge upgrade will affect ETH’s price action and demand.
One possible outcome for ETH 2.0 is a favor of a massive rally as Ethereum enjoys improved demand dynamics. The second-largest crypto by market cap has exhibited bearishness in 2022’s initial half. Meanwhile, the altcoin has achieved multiple milestones, bringing the blockchain nearer to the Merge implementation. The alt’s mid-week actions retested support around the $1K value area.
Ethereum has had its price actions inside a range setup since mid-June, and the altcoin has tested this support several times. That reflects a healthy demand around this value region, adequate to conquer further bearishness.
However, the demand hasn’t been enough to ensure significant price upticks. Nevertheless, that narrative could shift anytime as the blockchain sees massive changes. While publishing this blog post, Ethereum traded at $1,213, gaining 0.24% within the past day.
Investors Readying for the ETH 2.0
The past three months witnessed enormous decentralized finance (DeFi) protocols exodus. These protocols had their TVL (total value locked) dropping to $72.4M from 4211.26M within three months. Some of the amounts went into exchanges. Approximately 1.59 million Ether tokens (worth $20.1M at prevailing market prices) entered crypto exchanges from May to June.
Moreover, market players shifted a significant ETH amount into Ethereum 2.0 staking. Total staked ETH value surged by around 1.49 million over the past three months. That signals that most Ether holders are readying for the ETH 2.0, but the highest signs of a possibly massive shift emerged this week. New ETH 2.0 validators increased from 79 on July 11 to July 13’s 1,978 validators.
Bulls for Ethereum
The significant validator surge matched the successful rollout of Shadow Fork 9. That sees Ethereum closing into its Merge, a massive shift that could catalyze increased Ethereum demand. Moreover, the developments might shift tides in bullish favor, thus the crucial status of the present support barrier.
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