On Wednesday, the trading ranges for the two biggest cryptocurrencies by market capitalization, bitcoin (BTC) and ether (ETH), moved in opposite directions.
With a smaller trading range than the day before, Bitcoin traded mostly flat throughout the day. BTC finally began to decrease and was most recently down 4.3%, but the decline did not completely cancel out the significant gains of the preceding four days.
Also, BTC trading volume was lower today than it was yesterday, and the day’s low price was higher than the day’s low price from Tuesday, which is known as a “higher low.” Even though the price is lower on the day, an asset making a higher low indicates the uptrend is still continuing.
In contrast, ether’s trading range widened compared to the day before, and its price drop nullified Tuesday gains.
When combined with volume, tracking an asset’s trading range might reveal information about investor mood. The “lower low” for Ether today compared to yesterday shows that ETH holders are considering the possibility that the market will turn bearish.
It will be crucial to monitor whether ETH’s price finds support around $1,640. Significant levels of activity are visible close to the present trading level in ETH’s Volume Profile Visible Range (VPVR). Price movement has a history of becoming “sticky” at these large volume nodes because liquidity is simple to obtain.
Due to the previously locked staked ether becoming available for sale, ETH investors may be concerned that the impending Shanghai upgrade would lead to selling pressure.
According to Ethereum.org, there are currently 17,577,231 ETH staked, equivalent to over $29 billion, with an annual percentage rate (APR) of 5.2%.
The extent to which it makes economic sense to do so is a counter-thesis to the idea that ETH will be sold off after the upgrade. The price of ETH today ($1,650) is higher than the price of ETH in December 2020 ($600), when staking started. However, investors might find the current APR to be convincing enough to keep betting given how it compares to other opportunities. In addition, eliminating the necessity to keep ETH locked up permanently during the staking process would encourage more staking rather than less. As a result, new stakers who wish to participate will probably balance out existing stakers who are withdrawing ETH to collect profits.
