Ethereum Remains Subdued by MAs Around $1,200 Despite the Increase in ETH Staking Yields
Ethereum was starting to show some decent buying pressure toward the end of October as it increased from around $1,200 to $1,650. but the ETX drama sent the crypto market crashing lower and ETH/USD fell below $1,100. Although the decline stalled and the price has stabilized between $1,200 and $1,300 now. Although, moving averages such as the 20 SMA (gray) have been providing resistance at the top, which might be a bearish signal.
Ethereum H4 Chart – The 20 SMA Acting As Resistance
The price still holds above $1,000 for ETH/USD
Ethereum upgraded its network from the proof-of-work system (PoW) to proof-of-stake (PoS), which means that miners will be out of work. Unlike the PoW where several computers act as nodes and validate a single block, with the new PoS new blocks are created by randomly selected validators. Over time, this might make numerous graphical processing unit (GPU) rigs useless.
However, staking is picking up in ETHEREUM as yields increase. Staking vanilla Ether is generating some impressive yields amid a broader crypto market crisis with returns on most fixed-income crypto products declining considerably.
The decentralized finance (DeFi) market is still doing good in the meanwhile. Users are earning up to 10.7% staking staked ether (stETH) at staking service Lido, which is the highest since the Merge in September. Although, the sentiment in the crypto market remains negative at the moment, until the waters calm following the ETX collapse. We have opened a buy Ethereum signal here last week so we are hoping for a bullish reversal.
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