- Ether Capital Corporation announced plans to stake 10,240 ETH to Ethereum’s Beacon change.
- Ethereum (ETH) prices jumped 11% since Dec 14.
NEW DELHI (CoinChapter.com) — Ether Capital Corporation, a Toronto-based technology company with goals to become the central hub for Ethereum and Web 3 ecosystem business and investment, announced plans to stake $40 million (Canadian $50 million) worth of Ethereum.
The allocation of 10,240 ETH represents a majority of Ether Capital’s Ethereum balance. The firm would stake its ETH on Ethereum’s Beacon chain, which went live on Dec 1, 2020. The Beacon chain is a proof-of-stake (PoS) blockchain and a part of Ethereum’s plans to transition to the more energy-efficient consensus mechanism.
As per Ether Capital’s announcement, the firm has partnered with Figment Inc. to run validation services for the staking. At present, Ethereum is completely switching to the PoS consensus mechanism by merging its current mainnet with the Beacon Chain.
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The merger is likely to complete by mid-2022. Ether Capital plans to stake ‘at least‘ 30,000 ETH out of its current purse of 43,512. As such, the firm’s staking goal, currently valued at $115 million (Canadian $150 million approx.), constitutes over 68% of its current ETH balance.
Our commitment to staking on Ethereum reflects our confidence in Ether as an asset and Ethereum as a network. We are eager to be the public company torchbearer in supporting infrastructure for one of the most innovative and highest growth movements in history. […] We believe that Ether is a generational asset in terms of its standing within the Web 3 ecosystem as well as its potential to deliver outstanding capital appreciationBrian Mosoff, CEO of Ether Capital Corporation’s announcement, said.
Moreover, Brian Mosoff, Ether Capital’s CEO, said the firm is perhaps the only public company with such a significant amount of Ethereum staked to date. According to Ethereum Foundation, the current staking rewards would be approximately 5.2% annually.
Ethereum Price Charts
Meanwhile, Ethereum’s native token, ETH, jumped 13% low ($3,646) to high ($4,120) on Wednesday. However, ETH ended the day with 4.1% intraday gains. Ethereum started the current week with an 8.4% intraday fall and struggled to recover to previous levels.
At present, ETH has immediate resistance coming from its 26-day EMA line at $4,141. A move above its immediate resistance would see ETH recover from its current week’s loss. A further upside would see Ethereum challenge its 50-Day MA resistance at $4,328.
If prices fail to continue their uptrend, immediate support for ETH is near its 100-day MA line at $3,886. Additionally, sustained downfall would see support at $3,638 come into play. Finally, the 200-day MA trendline provides additional support for ETH near the $3,343 price level.
The $3,343 has supported Ethereum price action since Oct 2. Meanwhile, momentum oscillator MACD is currently bearish for ETH. However, bars on the MACD histogram are contracting, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving upwards towards the MACD signal line (9-day EMA of MACD).
Contracting histogram bars mean that the bearish momentum is weakening and would likely turn bullish if the uptrend continues. In addition, the relative strength index for ETH is currently neutral, clocking 46.43 on the daily charts.
At the time of writing, ETH was trading at $4,045, up 0.60% on the day.