Following the Shapella update, the staking activity on the Ethereum (ETH) network is stabilising. Tom Dunleavy, a crypto researcher, observed that the number of fresh deposits to the Ethereum staking smart contracts currently outnumbers the number of withdrawals waiting in queue.
This suggests that the Ethereum protocol will inevitably see some degree of supply-side stability with more upside potential. The analyst claims that the growing staking deposit demonstrates the Ethereum protocol’s vitality following the forcible removal of thousands of units of the virtual currency from the Kraken exchange.
Following the introduction of the Shapella update earlier this month, Ethereum entered a new era. There has been a significant imbalance in the selling and redepositing of Ethereum tokens over the past few weeks due to early supporters of the Ethereum staking mechanism being particularly eager on withdrawing and selling their assets after nearly two years of locking them up.
It is expected that this rebalancing, which is quite important, will have a clear and positive undertone for the price going ahead. The supply of ETH will be dramatically reduced by increasing deposits, and prices will inevitably rise in response to a continuous or increasing demand.
Projections for price
Since the beginning of the month, Ethereum has had a very promising growth prospect because to the bullish sentiment surrounding the Shapella upgrade. The sell-off of unlocked tokens caused the positive impetus to wane, but the asset has built a solid support zone around the $1,700 price range.
This support level might act as a crucial launching pad for more impending price rises by relying on these various aspects. The cryptocurrency is now trading at $1,893.28 with a loss of 3.83%, but there is a strong chance that it could soon surpass its 90-day high of $2,137.45 and may possibly retest $2,500 if the staking momentum continues.
