On Nov. 9, the number of Ethereum addresses that held 32 or more Ether (ETH), fell to a one month low.
According to Glassnode data, the number of Externally Owned Ethereum addresses (EOA) dropped to 108.949 from 108.965 on Oct. 22. This is a sign traders and investors have ignored the potential to become validators on Ethereum 2.0’s proof-of-stake Blockchain.
Ethereum addresses with 32+ ETH deposits Glassnode
To become a full validator, a staker in Ethereum 2.0 must deposit 32 ETH to a designated smart address. The depositor is granted the rights to manage data and process transactions as well as add new blocks to the upgraded ETH Blockchain.
Glassnode analysts consider Ethereum addresses that have a balance of 32 or greater ETH tokens to be “potential validators.”
Only validators of wealthy Ethereum
A steady Ether price rise coincides with the recent decrease in Ethereum 2.0 validators.
Notably, the ETH price has risen almost 37% over the past 30 days and reached a record high of $4,842 on November 8. It now costs over $153,000 to become an Ethereum 2.0 full node validater, compared to $23,600 at beginning of the year.
Data from StakingRewards.com indicates that 32 Ethereum can be locked up for one year and yields an annual percentage yield (5.42%)
Staking Rewards for Ethereum 2.0 as of Nov. 9, 2016, 1600 UTC Source: StakingRewards.com
However, spot ETH positions in contrast have yielded almost 1,000% paper returns over the past twelve months. They also offer the flexibility to profit-take against possible downside risks.
What’s the difference between ETH and $6K?
As Ether prepares to go up towards $6,000., the number of validator addresses for Ethereum 2.0 has fallen as well.
As shown in the chart below, the cryptocurrency’s recent climb to an estimated $4,842 record is part of a Cup & Handle breakout. This means that the continuing bullish momentum towards or above $6,000 will continue, as shown in this chart.
Daily price chart for ETH/USD with Cup and Handle configuration. Source: TradingView
After the price rallies to the upside, the pattern corrects to form the Cup. The pattern begins with a rebound towards the previous high, followed by a failed breakout attempt at the Cup.
Related: DeFi tokens experience double-digit gains, as Ethereum and Bitcoin chase new heights
The price pulls back and forms a smaller, more rounding bottom known as the Handle. The price reaches a new high and moves by as much the cup’s depth.
Ether’s Cup depth exceeds $2,200, which means that its Cup and Handle profit target is around $6,100. If it happens, the cost to become an ETH2.0 validator will rise to $195,000.
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