Crypto NewsEthereum (ETH)

Look out for this bullish under-the-radar catalyst for Ethereum in 2022, says macro analyst Lyn Alden

Macro-investment strategist Lyn Alden names an overlooked factor that could act as a catalyst Ethereum‘s rise (ETH) in 2022.
In a new interview on YouTube channel Investing Made Simple, Alden explains why the amount of ETH in the Ethereum 2.0 staking contract serves as a bullish indicator for the second largest crypto asset after Market capitalization.

“What I’m watching is signing the Ethereum contract. They started the Beacon Chain about a year ago, and they’re doing this staking contract, and that’s one-sided. Once you lock coins, they’ll be there until either something changes or until the merge takes place. One thing that I looked at is that Bitcoin Coming off the exchanges pretty quickly, but Ethereum’s getting off the exchanges even a bit faster, in part because it goes into that contract.

Basically, an illiquid supply is forming, and as long as it lasts, that’s a pretty strong bullish variable. I mean, there is over 8 million ETH in this contract. I think we’re getting closer to 9 million. I might not have checked in for a couple of weeks and that’s a bullish catalyst overall. “

The distributor ledger explorer Etherscan shows that crypto investors have included 8,793,458 ETH worth 35.43 billion US dollars in the smart contract. Those who store their ETH in the smart contract try to get validators from. to be Ethereum‘s next iteration.

However, the investment strategist also points out that Ethereum could experience a sell-off event as soon as the trapped ETH tokens are unlocked.

“I think once that gets merged and unlocked this could be a liquidity event. Some of these coins have pretty sizeable wins, and some people may want to take winnings off the table so I would be more unsure after the merger. Ironically, it could be one of those people who sell the news events that builds up a lot of anticipation and then maybe acts as a catalyst to cool off for a while. “

The merger is a highly anticipated event for Ethereum as the upgrade marks the transition to a proof-of-stakeConsensus mechanism represents. The event is expected to take place in the first or second quarter of 2022.

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Source: Crypto News Deutsch

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