After a short-term surge in the Asian session, the Ethereum European market closed at $1853 in the morning, with a clear bullish signal on the technical side. After the upgrade of Shanghai, the large outflow of funds that investors were concerned about did not actually occur
After a short-term surge in the Asian session, the Ethereum European market closed at $1853 in the morning, with a clear bullish signal on the technical side. After the upgrade of Shanghai, the large outflow of funds that investors were concerned about did not actually occur. Under a court order, the US Securities and Exchange Commission will publicly disclose the Hinman document stating that "Ethereum is not a security" in June, which is seen as a key positive factor supporting the continued rise of currency prices.
The BeaconChain of Ethereum has recorded significant inflows of funds, with over $7.7 billion worth of registered Ethereum deposits since the launch of the network's pledge Ethereum (stETH) withdrawal on April 12th. Although some speculate that there will be a significant outflow of funds after the upgrade of Shanghai Shapella, it has not actually occurred
Beacon chain is an important component of Ethereum 2.0, presented as a Proof of Rights (PoS) mechanism to coordinate validators, validate transactions, and propose and finalize blocks in the Ethereum network.
Arkham Intelligence data shows that Ethereum deposits are approximately 1.25 million Ethereum coins more than the balance recorded when STETH withdrawals were launched on April 12th. Analysis also shows that in some cases, daily deposit changes reach 225000 Ethereum coins, equivalent to over $400 million per day.
According to the inflow chart below, there is a clear peak after the upgrade of Shanghai Shapella, which fully promotes withdrawals from the beacon chain. The STETH address "0xae7" of Lido, the largest Ethereum pledge pool, ranks among the top in deposits, breaking its consistent record as the largest depositor, with inflows exceeding $15 billion. Arkham stated that this accounts for at least 33% of the Ethereum locked in deposit contracts.
After enabling STETH withdrawal, Lido's recharge address was changed to the new address "0xfdd", which has been ranked fourth among recharge addresses since April, with a total recharge volume of over 214000 Ethernet coins, equivalent to approximately 386 million US dollars, despite being active for only about three years.
In addition, with the growth of Ethereum 2.0 and Beacon Chain contracts, there has been an increase in pledge services and the use of Frax stable currency for LiquidStacking tokens. This project is one of the best in its class, committed to providing a more stable and reliable alternative to traditional fiat currencies. Frax provides frxETH products that allow users to mortgage their Ethereum and receive liquidity backed Ethereum tokens sfrxETH in return.
Although Frax ranks 14th on the depositor list, it has held a total stake of 72400 Ethereum since April, accounting for a significant portion of its total supply of 215000 FrxETH, reaching 33.6%.
Countdown to June Public Disclosure of US Securities Regulatory Commission Hinman Documents
Bill Hinman, a former director of the US Securities Regulatory Commission and former head of corporate finance, gave a speech in 2018, which was included in the so-called "Hinman document". He basically expressed the key information that "Ethereum is not a security", and the content involved internal discussions and deliberations around the speech by the US Securities Regulatory Commission.
For many years, the US Securities and Exchange Commission has been unable to provide a legal definition of whether Ethereum is a commodity or a security. But if the court orders the unsealing of the Hinman document, it means indirectly verifying its legal definition. James Filan, a defense lawyer for Ripple, wrote last week: "According to the court's order of September 12, 2022, June 6 will be the time point for the decision to publicly disclose the Hinman documents
John Deaton, a lawyer who supports Ripple, stated that in the lawsuit between the US Securities and Exchange Commission and Ripple, Ripple's legal documents had a brief footnote, which he only recently noticed, confirming whether Ripple Coin (XRP) was a security or not. In fact, it was widely discussed within the US Securities and Exchange Commission before Hinman's speech.
This may be of significant importance, as Dieton believes that a footnote from a third party outside of the US Securities and Exchange Commission states: "There are reasonable reasons to conclude that XRP does not meet all the elements of Howey's analysis and therefore is not a securities under federal securities law
Therefore, for Ripple or Ethereum, the disclosure of Hinman documents will eliminate regulatory uncertainty, thereby increasing investors' long-term confidence, and is seen as a key positive signal.
Ethereum prices show a bullish outlook
LockridgeOkoth of FXStreet pointed out that the emergence and subsequent development of pledge services and liquidity pledge tokens is a positive step forward for the Ethereum network, providing users with multiple options aimed at earning rewards through the tokens they hold. This growth demonstrates the popularity of Ethereum 2.0 and Beacon Chain, providing a more efficient and sustainable network for decentralized applications (dApps).
Despite the widespread uncertainty in the encryption market, the long-term prospects for Ethereum prices and the broader digital asset industry remain optimistic.
As shown in the figure below, the price trend of Ethereum has formed a downward wedge shape and is consolidating to break through. However, due to the correlation between PoS tokens and Bitcoin, this bullish potential seems limited. This means that investors may not achieve this technological form with a bullish trend until Bitcoin prices begin to rise.
Nevertheless, the surge in Bitcoin may trigger a bullish recovery in Ethereum prices to confirm the optimistic outlook of the dominant chart model. Breaking through the $1909 barrier decisively may make it more likely for bulls to pursue the next resistance level of $2012.
At the same time, due to significant selling pressure from the 50 day moving average of $1836, Ethereum prices may fall below the immediate support convergence point between the lower limit of the downward trend line and the 100 day moving average of $1771. The subsequent price trend may freely fall to the 200 day moving average of $1701, and buyer momentum may trigger a rebound.
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