- Since January 4th, the number of active validators on Ethereum has been steadily decreasing.
- ETH accumulation continues among coin traders.
The number of active validators on the Ethereum (ETH) proof-of-stake (PoS) network has declined sharply, reaching its lowest point as of January 12, Reuters reported. Glassnode.
Source: Glassnode
AMBCrypto found that the decline began on January 4, when the total number of validators volunteering from the network’s validator pool rose to an all-time high of 17,821.
Source: Glassnode
This trend is supported by Matrixport, a prominent cryptocurrency investment service provider. predicted There is a possibility that the U.S. Securities and Exchange Commission (SEC) may reject all Bitcoin ETF applications.
After the report was released, major asset prices plummeted. causing The liquidation amount is over $500 million.
Many feared that Matrixport’s predictions were accurate and could lead to a severe market decline, which led to a surge in the number of daily validators leaving the Ethereum network on January 4th.
The number of daily active validators on PoS chains is starting to increase, but still remains at the low levels recorded in December.
As of January 14, the total number of active validators on Ethereum is 897,121. Likewise, as the price of ETH rose following ETF approval, voluntary withdrawals from the chain decreased.
According to data from Glassnode, only 124 validators left the network on January 14th.
Strengthening bullish momentum
At press time, ETH was trading at $2,517, according to data from CoinMarketCap. Last week the coin price rose 15%.
Price movements assessed on the weekly charts indicated continued bullish pressure. This is gleaned from ETH’s momentum indicator, which shows that traders have continued to accumulate altcoins.
For example, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators were 70.37 and 87.02, respectively. These levels suggest that despite the recent uptrend, buying pressure has exceeded selling of the coin.
Source: TradingView
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However, these RSI and MFI values usually indicate market overheating. Therefore, a minor downside in the value of ETH is expected.
ETH’s Chaikin Money Flow (CMF) maintains an upward trend and is above the 0 line at press time. ETH’s CMF, which returned a value of 0.16, demonstrated a steady supply of liquidity needed to sustain the price rise.