Key Takeaways:
- The rate of ETH withdrawals following Ethereum’s Shanghai hard fork has slowed down.
- Meanwhile, the token is trying to confirm a bullish technical pattern.
NEW DELHI (CoinChapter.com) — Ethereum’s Shanghai hard fork went live on April 12, enabling staked ETH withdrawals for users. After the upgrade, withdrawals crossed the 1 million ETH milestone on April 17 before the pace slowed.
At the same time, users have deposited more than 502,000 ETH tokens since the hard fork.
Full and Partial Staking Withdrawals
The Shanghai upgrade introduced two types of withdrawals on Ethereum, partial and full.
Partial withdrawals involve accrued awards, while full withdrawals are withdrawals of the entire 32 ETH balance necessary to become a validator on the blockchain. To enable withdrawals, validators must set their withdrawal credential prefixes to 0x01 from 0x00.
When Shanghai launched, only 40% of validator credentials were 0x01, which rose to 85.3% by April 18. According to data journalist Martin Lee, all the validators would eventually make the switch, but only to withdraw their accrued rewards.
Lee affirmed the rising numbers did not necessarily suggest validators’ desire to exist.
Moreover, on-chain researcher Lookonchain highlighted that several addresses re-staked their ETH tokens after withdrawal.
Lookonchain shared a list of the top 15 ETH withdrawal addresses, noting that three chose to re-stake their ETH holdings.
Ethereum Trying To Confirm A Bullish Technical Setup
Meanwhile, Ether’s price has formed a bullish technical pattern called the ascending triangle. A horizontal line connecting swing highs and a rising trendline connecting swing lows form the pattern.
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In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, though the Ethereum token’s price broke above the horizontal trendline, the ETH price would need to rise further to confirm the breakout.
The price target for a breakout is equal to the triangle’s height at its thickest point. Hence, the ETH price might rise 117% to reach $4,557. However, in the real world, Ethereum might lack bullish tailwinds to reach the projected price target before Q4 2023 or Q1 2024.
ETH bulls struggle to break above a multi-week ascending trendline resistance near $2,180. After failing to break above the trendline on April 14, the ETH price has been crabbing. On April 18, ETH price swung 3.4% to form a daily high near $2,124 before correcting.
If the prime altcoin’s price rise above the trendline resistance, ETH price might target resistance near $2,360 before downside corrections pare gains.
Conversely, if the trendline rebuffs ETH’s rally, the Ether token price might drop to the support level near $2,010. Breaching the immediate support level might force the ETH price to test support near $1,870 before recovering.
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