20% of the total ETH supply has been staked. Negative CMF hinted that liquidity would leave the ETH market.
After implementing the Shanghai hardfork, Ethereum [ETH] introduced the ability to withdraw staked Ether from its consensus mechanism. However, contrary to many expectations, the upgrade would not yet result in a wave of withdrawals. Instead, it has led to a new wave of deposits.
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According to new data from Dune analysis, 20% of the leading altcoin’s total supply has been staked. At the time of writing, 23.83 million ETH tokens had been staked, with a net flow of 4.46 million ETH recorded since the Shanghai Upgrade went live.
Payouts are on a downward trend
After the Shanghai hardfork was implemented on April 12, daily ETH deposits immediately rose from 460 ETH to 8108 ETH, representing a 1662% increase, data from Glasnode revealed. On June 2, this peaked at 13,595 ETH daily ETH deposits. While deposits plummeted after reaching this peak, an average daily deposit of 2,627 ETH has since been recorded.
Furthermore, the Ethereum 2.0 network has seen a burst in newly staked ETH since the Shanghai upgrade. Similarly, the daily tally of newly staked ETH rose to its all-time high on June 1, with 408,940 ETH coins deposited into the staking contract that day.
While many expected the Shanghai upgrade to open the floodgates of ETH withdrawals, reducing altcoin value and staking deposits, data from Dune Analytics revealed that after the temporary surge in withdrawals after Shanghai, this has now slowed. .
Read Ethereum’s [ETH] Price Forecast 2023-24
Before you bring in the altcoin…
At the time of writing, ETH was exchanging hands for $1,885, per data from CoinMarketCap. Over the past month, the alt’s price fluctuated within the $1750 and $1850 price ranges. This price consolidation led to another bear cycle on July 7. A look at the asset’s Moving Average Convergence/Divergence (MACD) indicator confirmed this.
On July 7, the MACD line crossed the trendline in a downtrend, signaling the return of the bears in the ETH market. This is often taken as a bearish sign, showing that coin distribution has begun to outpace accumulation.
The downward intersection of the MACD line with the trendline coincided with a drop in ETH’s Chaikin Money Flow (CMF) into negative territory. With a negative -0.12 at the time of writing, the ETH market was struggling with liquidity exits.
This post Ethereum strikers say “no” to withdrawals because…
was published first on https://ambcrypto.com/ethereum-stakers-say-nay-to-withdrawals-as/