Unlocking Ethereum Tokens: Potential Benefits – 29 March 2023
29 Mar 2023
- With the presence and relevance of liquid staking derivatives, the unlocking of the Ethereum token might not be a bad development for ETH.
- According to experts, it won’t be a big deal to release ETH tokens when the alternative currency is 50% below its record high.
- Experts anticipate a rally to $2,000 because of Ethereum’s decreasing quantity and bullish momentum.
The last significant change to the blockchain of a cryptocurrency was when Ethereum switched from Proof-of-Work to Proof-of-Stake (Pos). The following significant occurrence in Ethereum is the Shanghai hard fork and token unlock. 70,000 ETH tokens were removed from the altcoin’s circulating quantity when Pos was implemented.
Experts are confident that Ethereum’s price will rise to $2,000 and that the token unlock will not materialize because holders will be able to invest their ETH in liquid staking futures.
The bear case for the ETH token unlocks, according to AI supporter and cryptocurrency analyst Adriano Feria, ignores the presence of liquid staking derivatives and presupposes that all stakes are heading into Shanghai with zero liquidity.
Stakers are regarded as highly confident investors who have no intention of selling during a bear market. It is meaningless to unlock staked ETH tokens now that the alternative currency is 50% below its all-time high. Re-staking ETH may give the alternative currency an advantage in maintaining its deflationary trend.
As the ETH token unlock draws close, Liquid Staking Tokens are making a comeback. Lido leads in new ETH staking deposits with 45,600 ETH staked since March 22, representing 36.4% of 7-day ETH deposits.
ETHEREUM TECHNICAL ANALYSIS DAILY CHART:
Ethereum is currently trading in an up channel.
Ethereum is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
Ethereum resistance is at 1809.41 & its immediate support level is 1771.99.
HOW TO TRADE ETHEREUM
Ethereum is presently trading in an upward channel, it has broken its previous day’s high, and is now at a zone of resistance; if this zone is broken, a further upside to the next resistance is possible.