The total number of Ethereum 2.0 nodes is dropping as the ETH price is likely to reach $ 6,100

According to Glassnode, the number of external Ethereum (EOA) accounts with at least 32 ETH has fallen from 108,965 on October 22nd to 108,949 at the current time (November 10th) to a monthly low. This is an indication that traders and investors have given up the prospect of becoming validators for the upcoming Proof-of-Stake (POS) upgrade – Ethereum 2.0.

Ethereum address with over 32 ETH deposit | Source: Glassnode

In particular, staking in Ethereum 2.0 requires users to deposit 32 ETH into a specified smart contract address in order to become a full node validator. This gives the sender the right to manage data, process transactions and add new blocks to the updated Ethereum blockchain.

As a result, Glassnode analysts view Ethereum addresses with a balance of 32 ETH or more as “potential validators”.

Just people from new realms becomes ETH 2.0 validator

The recent decline in the number of potential Ethereum 2.0 validators coincides with a steady rally in Ether.

It is noteworthy that the price of ETH has risen nearly 37% in the past 30 days and hit a new all-time high (ATH) of around $ 4,842 on November 8th Full Node Validator on the Ethereum 2.0 blockchain, up from around 23,600 US Dollars at the beginning of the year.

Meanwhile data from StakingRewards.com shows Locking 32 ETH for one year currently results in a percentage return of 5.42% per year.

ETH staking rewards on Ethereum 2.0 | Source: StakingRewards.com

In contrast, holding ETH on the spot market has generated returns of nearly 1,000% on paper over the past 12 months, with the ability to dynamically capitalize on potential downside risks.

ETH on the way to $ 6,000?

The number of Ethereum 2.0 Validator addresses was dropping at the same time as the price of Ether was heading towards $ 6,000.

ETH hit an ATH near $ 4,842 in what appears to be a cup-with-grip breakout, with sustained upward momentum expected to continue towards or above $ 6,000 as shown in the chart below.

Daily setup of the ETH / USD price chart of the Cup-with-Griff pattern | Source: TradingView

A mug with a handle forms after ETH price first rises and then corrects to form a rounded bottom known as a mug. A bounce on the previous high followed by a failed breakout attempt above that level.

Price pulls back again and creates a smaller round base, the so-called handle. Eventually price returned to previous highs for the second time and successfully broke out to move around the depth of the cup.

The cup depth is over $ 2,200, which makes the cup handle profit target at around $ 6,100. In this case, the cost of becoming an ETH 2.0 validator goes up to $ 195,200.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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According to Cointelegraph

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