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Ethereum 2.0 node count drops to a one-month low as ETH price climbs to new heights

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On November 9, the number of Ethereum addresses holding 32 or more ETH hit a one-month low.

According to statistics from Glassnode, the number of Externally Owned Ethereum Addresses (EOA) has dropped to 108,949 from 108,965 on Oct. 22, indicating that traders and investors have shied away from the opportunity to become validators on Ethereum 2.0, the company’s future proof-of-stake blockchain.

Ethereum addresses with 32+ ETH deposit. Source: Glassnode

In order to become a full node validator in Ethereum 2.0, users must deposit 32 ETH into a specific smart contract account. The depositor acquires the ability to manage data, conduct transactions, and add new blocks to the enhanced ETH blockchain as a result of doing so.

According to Glassnode experts, Ethereum addresses having a balance of 32 or more ETH tokens are considered “possible validators”.

Opulent Ethereum validators only

The recent drop in the number of possible Ethereum 2.0 validators corresponds to a consistent increase in the price of Ether.

In particular, the price of ETH has increased by about 37% in the previous 30 days, reaching a high of $4,842 on November 8. To put it another way, being a full node validator on the Ethereum 2.0 blockchain currently costs more than $153,000, compared to around $23,600 at the start of the year.

Meanwhile, according to statistics from StakingRewards.com, securing 32 ETH for a year currently yields a 5.42% annual percentage yield.

Ethereum 2.0 staking rewards as of 1600 UTC, Nov. 9. Source: StakingRewards.com

Holding spot ETH holdings, on the other hand, has returned about 1,000% in paper returns over the last 12 months, with the added flexibility of profit-taking to mitigate any negative risks.

ETH to $6K?

As Ether prepares for a run-up to $6,000, the number of Ethereum 2.0 validator addresses has also decreased.

As illustrated in the chart below, the cryptocurrency’s recent rise to a record high of over $4,842 is part of a Cup and Handle breakout, which indicates that the current bullish momentum will likely continue beyond or beyond $6,000.

ETH/USD daily price chart featuring Cup and Handle setup. Source: TradingView

After a rally to the upside, the price corrects to produce a rounding bottom, known as the Cup. Which forms the pattern. Following a recovery towards the previous high, an unsuccessful breakout attempt above that level occurs.

The price pulls back again, forming the Handle, a smaller rounded bottom. Finally, the price returns to a prior high for the second time. Effectively breaking out to move as much as the cup’s depth.

Ether’s Cup depth is above $2,200, implying a profit objective of roughly $6,100 for Cup and Handle. If this happens, the cost of becoming an ETH 2.0 validator will rise to $195,200.

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