Over 100,000 ETH was burnt after Ethereum Improvement Proposal 1559 (EIP 1559) was implemented in the London Hard Fork. At the same time, the amount of Ether invested in the ETH2 contract has increased.
Staking can be thought of as an “enforced holding” strategy. According to this storey, over 6% of Ethereum’s supply has been staked, and $100,000 has been burned, causing a “supply shock” across exchanges.
In the last two weeks, exchanges’ ETH reserves have plummeted, reaching a low of 18.98 million.
Ethereum netflow on exchanges is minimal, and inflows to exchanges are suppressed. This indicates that there is less Ethereum available for purchase/sale on exchanges, encouraging traders to maintain their positions.
A decrease in the mean dollar invested age indicates a movement in Ether’s dormant investments. This has historically signalled the start of an altcoin price increase. If this downward trend continues, Ethereum’s price is expected to rise.
The bullish trend is likely to continue if Ethereum maintains above its support level of $3000, according to analysts.