- Ethereum 2.0 deposit contract now holds 4.0412 million ETH
- This amount in Ethereum is worth roughly $10.8 Billion
- Continual deposits to the contract show long term commitment by Ethereum investors
- Ethereum could suffer a short-term correction with the expiry of options this Friday
Ethereum investors are continually sending funds to the ETH 2.0 deposit contract almost six months after the upgrade was initiated. At the time of writing, the Ethereum 2.0 deposit contract holds 4.0412 million ETH valued at $10.8 Billion using ETH’s current value at $2,700.
The growth of Ethereum deposits on the ETH 2.0 contract has been visualized by the team at CryptoQuant through the following chart.
Connecting the dots, such a high amount of deposits to the Ethereum 2.0 contract, while the upgrade is still in development, is a clear sign that long-term ETH investors are bullish on the value of the digital asset and what the future holds for the blockchain.
4 million ETH is 3.5% of Ethereum’s circulating supply of 115.665 million. This amount is also ‘unstakable’ till the entire Ethereum 2.0 upgrade is complete. Therefore, any Ethereum sent to the ETH 2.0 contract reduces available ETH for other traders and investors including institutions. Such an organic supply shrinkage is beneficial to the value of Ethereum right now.
Ethereum Aims for new ATHs as Options and Futures Expire Tomorrow
At the time of writing, Ethereum is consolidating at the $2,700 price area in anticipation of what looks like a move towards the $3k price ceiling. However, Ethereum still has two more hurdles this month in the form of ETH futures and options expiring tomorrow, Friday, April 30th, as well as the monthly close on the same date.
Roughly $930 million in Ethereum options expire tomorrow in the next 48 hours. Of this amount, $430 million in ETH options will expire on Deribit with an open interest of $4 Billion.
Such a high amount of Ethereum options expiring, coupled with the monthly close tomorrow, is sure to add selling pressure on Ethereum, causing a possible retest of $2,500. On the bright side, once April is over, the month of May provides Ethereum with a new environment to thrive.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.