Ethereum (ETH) has experienced a notable surge in price over the past 48 hours, rising by more than 8% from around $2,400 on July 1 to nearly $2,600 at the time of writing. This uptrend has been supported by on-chain analysis indicating that both accumulation addresses and liquid staking volume are approaching all-time highs, leading to increased optimism about the future price of ETH.
Liquid staking activity on the Ethereum network has seen a significant increase since June 1, with the total amount of ETH staked rising from 34.54 million to 35.52 million by June 30. This represents a growth of nearly one million ETH in just one month. As of July 1, a new record in liquid staking was set at 35.56 million ETH, with a majority of accumulation addresses belonging to institutional investors, ETFs, and other large holders.
Many investors are opting to earn yield through liquid staking while anticipating further price appreciation. Prominent decentralized finance (DeFi) protocols like Lido and Binance Liquid Staking have emerged as key players in this trend, offering scalable solutions and investor-friendly features.
In addition to the rise in liquid staking, ETH accumulation addresses are also on the rise, nearing record highs. These addresses, which represent entities accumulating ETH without actively selling, grew by 35.97% from 16.72 million on June 1 to 22.74 million by June 30. The average acquisition cost of these accumulation addresses was $2,114 on July 1, with ETH trading at $2,593 currently, resulting in a profit of approximately 22.65%.
From a technical analysis standpoint, ETH appears set for a potential breakout in the near future. Analysts have pointed out that ETH is on the verge of breaking out of a broadening wedge pattern on the weekly chart, with a potential upside target of $4,200. Institutional interest in Ethereum is also on the rise, with prominent figures like Tom Lee and Joe Lubin revealing plans to accumulate significant ETH positions.
However, it is crucial for ETH to maintain support above the $2,200 level to sustain its upward momentum. A breakdown below this level could lead to a potential drop to as low as $1,160. Currently, ETH is trading at $2,593, reflecting a 1.7% increase in the past 24 hours.
In conclusion, Ethereum’s recent price surge, coupled with strong on-chain indicators and growing institutional interest, suggests that the cryptocurrency may be primed for further gains in the near term. As the market continues to evolve, ETH holders and investors are closely monitoring these developments for potential opportunities.