Key Takeaways:
- Total value locked in Ethereum 2.0 contracts reached a new all-time high on Dec 29.
- Ether (ETH) price failed to hold above $4,000 levels.
NEW DELHI (CoinChapter.com) — Ethereum’s network upgrade, Ethereum 2.0, continues to see an uptick in investments, pushing the total value locked (TVL) on the platform to a new ATH.
A tweet from crypto analytics firm Glassnode shared Ethereum 2.0’s latest achievement. The total value in ETH 2.0 reached 8,813,554 ETH, worth over $33 billion at the current ETH price.
ETH 2.0’s TVL rose fairly steadily over the year, boosted by several developments. The growing popularity of NFTs might have lent a hand to the increasing investor interest. Ether Capital Corporation, a Toronto-based technology company, recently announced plans to stake $40 million worth of ETH in Ethereum 2.0.
Also Read: Ether Capital announces plans to stake $40M worth of Ethereum.
Moreover, the firm, which aims to become the central hub for Ethereum and Web 3 ecosystem business and investment, plans to stake at least 30,000 ETH out of its current purse of 43,512 by mid-2022.
Ethereum introduced a burning mechanism through the EIP-1559 implemented during the London hard fork. Burning introduces deflationary pressure in ETH’s tokenomics. Furthermore, analysts compute that ETH 2.0 would represent a triple-halving for ETH.
In detail, halving is a Bitcoin-related event in which the reward for mining Bitcoin is reduced by 50%. As such, the Ethereum 2.0 upgrade would reduce sell pressure by almost 90%, equivalent to almost three Bitcoin halvings.
Ethereum 2.0 is the upgrade that plans to address Ethereum’s scalability issues. In addition, the upgrade would transition the network to the more energy-efficient Proof-of-Stake (PoS) consensus mechanism from the existing Proof-of-Work (PoW) mechanism.
Ethereum Price Chart
Ethereum’s price dropped more than 6% on Dec 28, with the downtrend continuing on Thursday. ETH fell 4.6% from Dec 29’s high ($3,852) to the day’s low ($3,672) before recovering. Ethereum prices have lost over 19% since Dec began, beating Bitcoin’s monthly loss.
At present, the $3,888 price level acts as immediate resistance for Ethereum prices. ETH’s 100-day MA and 26-day EMA lines form a confluence near the Ethereum token’s $4,000 resistance. In addition, if ETH manages to rally above the confluence resistance, its 50-day MA line forms resistance near $4,200.
ETH bulls would try to arrest the current downtrend near its immediate support at $3,700. However, if the selling pressure does not decrease, prices could fall near $3,494. ETH price is bullish in the long-term time frame, as the Ethereum token’s 200-day MA line provides support near the $3,360 price level.
Related: Ethereum set for new resistance level as ETH fluctuates near $4K.
Meanwhile, trend-based momentum oscillator MACD charted a bearish crossover for ETH prices on Dec 29. A bearish crossover occurs when the MACD line (12-day and 26-day EMA difference) moves below its signal line (9-day EMA of MACD). The move indicates Ether’s momentum has turned in the bears’ favor.
Bars on the MACD histogram, which plots the difference between the two MACD lines, turned negative on Wednesday. Furthermore, the relative strength index for Ethereum is neutral for ETH, clocking 38.85 on the daily charts. However, the RSI trendline moves downwards and might reach oversold (<30) regions if the downtrend continues.
At the time of writing, ETH was trading at $3,735, down 1.54% on the day.
