After three weeks of positive performance in the market, Ethereum has finally found fresh support over the $3,000 price level. The price, however, has been consolidating for few days and has seen several dips.
Recently, there has been a reversal in the price action owing to the gains on the BTC charts, and this has helped Ethereum pushed over the $3,200.
After the implementation Ethereum Improvement Proposal (EIP-1559), there have been substantial changes in the Ethereum network. These changes have returned a positive effect on the prices of the altcoins too. As highlighted by Glassnode, the ETH rally is supported by the high value staked in the Ethereum 2.0 and the capital rotations.
Staking and Outflows Took Over
The trajectory of the price of Ethereum was helped by the continuous outflow in the supply of Ethereum on different exchanges. As of the time of compiling this article, the ETH balance on exchanges has been reduced to an ATH of 13% of the total supply in circulation. This figure is equivalent to about 15.3 million Ether approximately.
On the other hand, the total value staked (TVS) has seen a perpetual hike, as the metric is sustaining an upward trend at the time of compiling this article.
The increase in the asset outflow has indicated a demand pressure and more HODLing positions as people are storing up the token in their wallets. Talking about the TVS currently on the ETH 2.0, there are about 7 million ETH deposited already, and this is about 6 percent of the total asset in circulation.
The Asset Lido is Increasing too
The increased outflows are an indication that the asset is getting stored in cold wallets or being invested or staked in the DeFi space. Of course, higher stakes mean higher investments in the DeFi Protocol.
Remarkably, a substantial amount of Ethereum has been moved to the new ETH 2.0 staking platform. The proof of this is in the increasing Lido deposits after the TVS surged to 12% this week.
Does these Mean Gains for Ethereum?
Truthfully, the outflows and the buying pressure have been backed by the staking activity on the network, but the price action is still lagging. Ethereum has been struggling for a while to break beyond the $3,300 and hold above it.
The reality of this means that another bull run is imminent, and there will be a new outflow all-time high. Till then, it is good to monitor the metrics mentioned above.