#ethprices

Ethereum (ETH) has experienced a significant surge in prices, climbing approximately 18% from its June 2023 lows. This impressive growth can be attributed to two key factors: the rising trend of ETH staking and the mass exodus of funds from centralized cryptocurrency exchanges such as Binance and Coinbase.

Positive Momentum and Steady Trading

As of June 25, ETH is currently being traded at $1,912. Despite maintaining stability over the past two days, the cryptocurrency remains within a bullish formation following substantial gains earlier this week. Traders are optimistic about the possibility of further price increases, especially considering the potential for surpassing immediate liquidation levels, including the April 2023 highs at $2,100.

Increase in Ethereum Staking

Etherscan data reveals that there have been over 216,000 transactions involving users staking more than 25.5 million ETH, amounting to a staggering value of over $48.9 billion at spot rates. This upward trajectory indicates growing support from the wider Ethereum community and a heightened confidence in the overall state of the network.

Transition to Proof-of-Stake Consensus Algorithm

Ethereum recently underwent a significant shift from a proof-of-work to a proof-of-stake consensus algorithm. This transformation means that instead of relying on miners, who traditionally require energy-intensive equipment to validate transactions and secure the network, Ethereum now depends on validators. Validators are required to stake a minimum of 32 ETH in their node and connect to the network to have a chance at validating a block of transactions. In return, they receive blockchain rewards of 2 ETH. The Ethereum network distributes block rewards and fees approximately every 13 seconds. Currently, on-chain data indicates that validators have staked an average of 32.18 ETH, and there are currently over 630,000 validators as of the latest data on June 25. The number of ETH being staked has steadily increased over the months, even after the recent Ethereum Shapella upgrade. During this hard fork, Ethereum allowed validators to unlock their coins for the first time since the launch of phase 1 of the Beacon Chain in late 2020. Contrary to expectations of price drops resulting from validators unlocking their coins and selling for cash, the number of Ethereum stakers has continued to rise. This trend strengthens the overall network and instills confidence among traders and investors.

ETH Withdrawals from Centralized Exchanges

As the number of ETH stakers continues to grow, additional supply is being withdrawn from the circulating market. Trader confidence is further bolstered by the surge in withdrawals from centralized exchanges. Notably, Glassnode data indicates that the amount of ETH held in centralized exchanges has reached record lows. This phenomenon can be partially attributed to recent lawsuits filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase, two prominent cryptocurrency exchanges renowned for their large client base and high trading volumes. Consequently, some crypto holders have become cautious and are withdrawing their coins from these exchanges, opting for non-custodial wallets that offer greater control and security. The withdrawal of coins from crypto exchanges is often perceived as a bullish signal. Although Coinbase and Binance have expressed their determination to defend themselves against the regulatory actions, the impact on ETH prices in future sessions remains uncertain.

Conclusion

In conclusion, Ethereum (ETH) has witnessed a remarkable surge in prices due to the increasing prevalence of ETH staking and the rising number of withdrawals from centralized cryptocurrency exchanges. These factors have instilled confidence in the market and are driving the positive momentum of ETH. Traders and investors eagerly await further developments in the cryptocurrency landscape, anticipating potential price gains in the future. For more articles visit: Cryptotechnews24 Source: crypto.news

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