Ethereum 2.0 node count drops to a one-month low as ETH price climbs to new heights

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 Ethereum accounts that are owned by third parties (EOAs) has increased to 108.949, from 108.965 on Oct. 22. This is a sign investors and traders have ignored the possibility of being validators on Ethereum 2.0’s proof-of-stake blockchain.

Ethereum addresses with 32+ ETH deposits Glassnode

To become a full validator, staking in Ethereum 2.0 requires that users deposit 32 ETH to a designated smart address. The depositor is granted the rights to process transactions, manage data and add blocks to the upgraded Ethereum 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 begins to pull back and grinds out the Handle, a smaller rounding bottom. 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.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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