- The increase in the number of ETH tokens staked in the Ethereum 2.0 protocol significantly reduces the overhead pressure.
- On-chain data by IntoTheBlock reveals that there is no robust resistance to hinder Ether from achieving new yearly highs.
Ethereum 2.0 has received tremendous support since the launch on December 1. According to data released by CryptoQuant, a total of 2.29 million ETH has already been staked. In other words, at least 2% of the entire Ethereum supply is currently staked in the new protocol.
Ethereum total value staked shoots up as overhead pressure decreases
Before the launch, the genesis event required 16,384 or more of the 32-ETH validator to be staked at least seven days before the launch is commissioned. While this threshold was achieved within a few days, investors continue to send their Ether into the new protocol, perhaps to earn rewards or even to feel like an integral part of the community.
Ethereum total value staked chart
As investors move to stake their coins, the supply of Ethereum is reducing in the market. In other words, Ether that has been staked cannot be sold in the market, at least for now. Thus, reducing the downward pressure on the flagship altcoin.
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals there is no supply barrier that may thwart the second-largest cryptocurrency by market cap from ascending to new yearly highs. According to this on-chain metric, there is only one minor interest area between $1,208 and $1,235 that hosts nearly 140,500 addresses, which previously purchased roughly 72,000 ETH.
The area may have the ability to absorb some of the buying pressure seen recently, but holders who have been on the sidelines may try to break even on their positions, slowing down the uptrend. However, if Ether slices through the hurdle, it would likely climb towards $1,500.
Ethereum IOMAP chart
On the flip side, the IOMAP model shows that Ether sits on top of a robust support area. Nearly 188,000 addresses had previously purchased approximately 1.8 million ETH between $1,134 and $1,170. In other words, the crucial area of interest suggests that bears will struggle to push prices to lower levels, but at the moment, the odds favor the bulls.
Ethereum is doddering at $1,205 at the time of writing. Its uptrend seems to have fizzled out at the new yearly high of $1,231. A reversal seems to be building momentum, with the price likely to drop under $1,200.
ETH/USD 4-hour chart
The Relative Strength Index suggests that Ether is currently overbought, and a reversal may come into the picture. However, with the price significantly above all the three moving averages, the 50 SMA, the 100 SMA and the 200 SMA, it is unlikely that the retreat will be substantial.
It worth noting that, from a technical perspective, the immediate stable support areas include $1,150, the range between $1,000 and $1,050 and the 50 SMA currently at $900.