- There has been a steady fall in active validator count on Ethereum since the 4th of January.
- ETH accumulation persists among coin traders.
The Ethereum [ETH] Proof-of-Stake (PoS) network has witnessed a sharp drop in active validators, hitting a year-to-date low on the 12th of January, according to data from Glassnode.
Source: Glassnode
AMBCrypto found that the decline began on the 4th of January, the same day that the total number of validators that exited the network’s validator pool voluntarily climbed to an all-time high of 17,821.
Source: Glassnode
This trend emerged just a day after Matrixport, a prominent crypto investment services provider, predicted a potential rejection of all Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC).
Following the report’s publication, the prices of leading assets plummeted, causing over $500 million in liquidations.
Many feared that Matrixport’s predictions might be accurate and result in a severe market decline, hence the surge in the daily count of validators that left the Ethereum network on the 4th of January.
While the daily active validator count on the PoS chain has begun to rise, it still sits at low levels recorded in December.
As of the 14th of January, the active validator count on Ethereum totaled 897,121. Likewise, with the rise in ETH’s price post-ETF approval, voluntary exits from the chain have reduced.
On the 14th of January, only 124 validators left the network, data from Glassnode showed.
Bullish momentum intensifies
At press time, ETH exchanged hands at $2,517, according to data from CoinMarketCap. The coin’s price has risen by 15% in the last week.
Its price movements assessed on a weekly chart revealed that bullish pressure persisted. This was gleaned from ETH’s momentum indicators, showing that traders have continued accumulating the altcoin.
For example, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators were spotted at 70.37 and 87.02, respectively. These levels suggested that buying pressure exceeded coin sell-offs despite the recent uptick.
Source: TradingView
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It is, however, key to note that these RSI and MFI values typically indicate an overheated market. Hence, a minor drawback in ETH’s value should be anticipated.
ETH’s Chaikin Money Flow (CMF) remained in an uptrend and positioned above the zero line at press time. Returning a value of 0.16, ETH’s CMF showed a steady supply of liquidity required to sustain a price rally.
