Ethereum (ETH) Network Unlocking Over 143,000 ETH, Will Bulls Take Over and Force Prices Above $3,000?

Ethereum fell to as low as $2,100 this week before bouncing, adding an impressive 25% from August 2024 lows. While there is confidence that prices will continue expanding

Ethereum price rebounded after falling as low as $2,100 this week, adding an impressive 25% from the August 2024 lows. While there is confidence that prices will continue to rise past $2,800 and even the psychological round number of $3,000, other market-related events could slow the bulls.

143,000 ETH Unlocked on the Ethereum Network

According to Token Unlocks data, hundreds of thousands of ETH are waiting in line and preparing to be withdrawn today. On-chain data shows validators are preparing to withdraw 143,000 ETH, worth approximately $350 million. Another 212,000 ETH will be available for trading in the coming days, which could put further pressure on prices.

As of August 9, Ethereum has a circulating supply of more than 120 million, according to CoinMarketCap data. Since Dencun the network has become inflationary, meaning no more coins are burned like before.

Validators must stake at least 32 ETH and maintain a high uptime of approximately 100% of their nodes. At the same time, according to the network's consensus rules, validators should not engage in illegal activities such as teaming up to confirm invalid transactions.

Failure may lead to slashing, where part of your stakes are taken as penalty. However, since they are committed to keeping the network decentralized, they receive a portion of the annual staking return. They also get the chance to confirm a block of transactions and receive rewards as a result.

The ETH expected to be released will be income from staking activities. This unlock is different from block rewards, which are distributed approximately every 13 seconds.

Even as the market expects a supply increase, Token Unlocks analysts state that these withdrawals do not necessarily mean that they will be liquidated. But if they sell, the recovery will likely be slow.

Will the Bulls Take Over the Market and Raise Prices Above $3,000?

There is a worrying situation. Token Unlocks analysts have historically observed that when the Ethereum network unlocks such a large amount of tokens in a short period of time, prices tend to fall. In the last three months, unlocks between 150,000 and 220,000 ETH coincided with price declines.

Looking at the daily chart, Ethereum is recovering. After unexpectedly falling to $2,100 earlier this week, the recovery has been good, although the downward trend continues.

The instant liquidation line is around $2,600. If buyers continue, confirming the August 8 gains, ETH prices may rise, affected by the expected deluge, and retesting $3,000.

The above is the detailed content of Ethereum (ETH) Network Unlocking Over 143,000 ETH, Will Bulls Take Over and Force Prices Above $3,000?. For more information, please follow other related articles on the PHP Chinese website!