• 13 July, 2024
News

Ethereum Price Consolidates Near $1,900 as ETH Validators are at Loss

The Crypto analytics platform Glassnode reported in its latest tweet that Ethereum validators are suffering losses. According to the report, the biggest stakeholders are those who have suffered the most losses.

According to the tweet, the net unrealized loss on the Ethereum beacon chain stood at $4.7 billion, although it is less than the peak of $16 billion after the crash of Terra Luna. The Ethereum price tested the low of $880 in June 2022 following the Luna collapse. Since then the Ethereum price has appreciated nearly 115% to the recent high of $1,942.50.

Further, Glassnode reported that “the largest validators are experiencing the financial pain with 70% of the unrealized losses”.

The Beacon Chain, a new proof-of-stake blockchain introduced on December 1, 2020. In September 2022, the beacon chain merged with the original Ethereum proof-of-work chain. 

Notably,staking is a process that validates transactions on the blockchain this validation is carried out by the computers and not by individuals. Validators received a share of the transaction fees or newly created assets in the process. 

Source: Trading view

Technically speaking, the Ethereum price consolidates near $1,920 on the 4-hour chart. A double top formation near $1,920 is a bearish technical formation. If the selling pressure sustains, the ETH price could witness a pullback in the short-term. Further, the formation of multiple Doji candlesticks gives a confirmation for the pause in the current upside momentum.

In case the Ethereum price drops below the session low and produces a daily close lower, the price could test the horizontal support zone at $1,878.9. More selling participation could drag the price toward the 50-day EMA at $1,859.

The RSI trades at 70, an overbought zone.

On the flip side, a shift in the bullish sentiment the Ethereum price could bounce toward $1,940. 

As of press time, ETH/USD is reading at $1,918, up 0.39% for the day.

Metaverse Updates: Rocket Pond Preview and ILO Plans by MV Team Read Previous

Metaverse Updates: Rocket Pond Preview and ILO Plans by MV Team

A16z Crypto’s ‘State of Crypto’ Report & Index Are Live Read Next

A16z Crypto’s ‘State of Crypto’ Report & Index Are Live