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Ethereum

$54M ETH burned: Ethereum records first deflationary day

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The third of September 2021 marks the first full day Ethereum blockchain turned deflationary amid the EIP-1559, which was deployed about 30 days ago. By being deflationary yesterday, it means that the number of ETH burned was greater than the total coins issued through block rewards. 

Over $54 million ETH burned

A total of 13,838 ETH were burned yesterday, which is equivalent to $54 million in accordance with ETH price at $3,906 during the time of writing. This number of ETH burned is over 2 percent higher than the total coins issued in block rewards throughout the last 24 hours.

Ethereum

Bullish? Only 16% of ETH Is Currently Sitting on Exchanges

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As investors continue to withdraw their ETH holdings off exchanges, the price of the token has surged by 800% in a year.

The overall demand for ETH continues to increase with new on-chain data suggesting that the total supply held on exchanges has declined by approximately one-third in the past year alone. As such, less than 20% of all ETH in existence is currently sitting on trading platforms.

Investors Withdraw ETH Tokens

It’s safe to say that the Ethereum blockchain is arguably the most utilized network in the cryptocurrency space. After all, it’s the home of numerous projects from two of the hottest trends in the past year – non-fungible tokens and decentralized finance.

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Recognizing the protocol’s potential, investors started praising its native cryptocurrency a while back and begun allocating substantial funds to it. Some of the most notable names, even such outside of the community that has openly admitted to owning portions of the second-largest cryptocurrency, include Mark Cuban and Robert Kiyosaki.

On-chain data from the analytics company Santiment suggests that most Ethereum investors seem bullish as the number of ETH tokens sitting on exchanges has gone down dramatically in the past year.

Back on September 26th, 2020, 24.1% of the overall supply of ETH stood on trading platforms. Fast-forward a year later, and the percentage has decreased by roughly one-third to 16.1%. Consequently, the analytics firm concluded that “this is a good sign for patient hodlers.”ADVERTISEMENT

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ETH Supply on Exchanges vs. ETH Price. Source: Santiment
ETH Supply on Exchanges vs. ETH Price. Source: Santiment

ETH’s Price Surge in a Year

The decreasing supply of ETH held on exchanges essentially means that investors are not in a rush to sell their coins, which could be regarded as a bullish sign. Looking at what transpired with its USD value in the same timeframe in which the supply on exchanges dropped is quite impressive on its own.

On September 26th last year, ETH traded around $350. It went on a full bull run in the following months and more than doubled its value by the end of 2020.

2021 started on a high note as the second-largest crypto kept doubling in price, it broke its 2018 ATH and reached unseen highs. It all culminated in mid-May when it charted its current record of $4,400.

Despite the subsequent retracement and volatility, ETH still stands today – a year later – at around $3,100. This means that in the same timeframe in which investors were withdrawing ETH from exchanges, the asset’s price skyrocketed by nearly 800%.

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ETHUSD. Source: TradingView
ETHUSD. Source: TradingView

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Ethereum’s Second-Largest Mining Pool to Shut Down on Sept 30 Amid China Regulatory Pressure

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The Chinese crackdown on the cryptocurrency industry has taken another victim – this time, the Ethereum mining pool Sparkpool.

The second-largest ETH mining pool – Sparkpool – has announced that it has halted access to new users in Mainland China. Furthermore, the organization plans to abandon all of its services as of September 30th.

  • Based in Hangzhou, China, Sparkpool is the second-largest Ethereum mining pool responsible for more than 20% of the total hash rate, as the picture below demonstrates.
Ethereum Hash Rate Distribution. Source: Etherscan
Ethereum Hash Rate Distribution. Source: Etherscan
  • However, the company plans to seize all operations due to the most recent Chinese crackdown. The announcement published earlier this week reads that it has suspended access to new users who are located in Mainland China as of September 24th.
  • This part might be expected to a large extent because of the nation’s openly hostile stance against the cryptocurrency industry. The latest news coming from the country indicated that all digital asset trading is banned.
  • This forced Huobi, one of the largest cryptocurrency exchanges, to stop providing any of its services to Chinese users.
  • However, Sparkpool has decided to take it a step further. The statement reads that a “complete shutdown for all Sparkpool services and operations for the existing users, at home or abroad, has been planned for September 30th, 2021 (UTC +8) at 20:00.”
  • The company argued that this decision comes “under the premise of ensuring the safety of our users’ assets.”
  • Sparkpool promised to provide more specific information on clearing and refunding rules in upcoming announcements through emails and in-site letters.
  • The closure of the second-largest ETH mining pool would most likely lead to damages to Ethereum’s hash rate. The metric, which is crucial for the network’s security, recently reached a new ATH, but it might drop in the following few weeks.

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Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?

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  • Ethereum price analysis is bullish today.
  • ETH/USD continued to move higher overnight.
  • ETH is likely to pause before breaking higher.

Ethereum price analysis is bullish today as bulls pushed the market price to the $3,150 resistance after a strong rally yesterday. Therefore, we expect ETH/USD to break higher later today and finally set a new higher high.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow? 1
Cryptocurrency heat map. Source: Coin360

The overall market traded with a bullish momentum over the last 24 hours. Bitcoin is up by 1.6 percent, while Ethereum has gained 4.47 percent. Meanwhile, Solana (SOL) is the best performer today, with a gain of 10 percent.

Ethereum price movement in the last 24 hours: Ethereum tests $3,150 previous high

ETH/USD traded in a range of $2,976.34 – $3,163.67, indicating a substantial amount of volatility over the last 24 hours. Trading volume has declined by 13.33 percent and totals $18.85 billion, while the total market cap trades around $365.4 billion, resulting in the market dominance of 18.75 percent.

ETH/USD 4-hour chart: ETH ready to set higher high?

On the 4-hour chart, Ethereum price action can be seen to look for a breakout above the previous high of $3,150 as bulls have regained control.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?
ETH/USD 4-hour chart. Source: TradingView

The overall market continued to trade in a bearish momentum last week. After a new lower high was set around $3,650, ETH/USD dropped more than 25 percent until support was found around $2,750.

What followed was a reaction higher, with the previous major support of $3,150 retested as resistance. What followed was another spike lower on Friday, with a slightly higher low set this time.

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Yesterday, the $2,750 support was tested for the third time, with a subsequent rally to $3,150 resistance over the last 24 hours. Overall, we can expect exhaustion for bearish momentum, likely leading the Ethereum price higher over the next 24 hours.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish for today as bulls pushed higher overnight, and the $3,150 resistance currently gets tested. Therefore, ETH/USD should see further upside above the $3,150 resistance later today.

While waiting for Ethereum to move further, read our guides on NFT Games, CoinJar, as well as Bitcoin Memes.

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