2.0 is the process of upgrading the network switch from Proof of Work (PoW) consensus mechanism to () and apply Sharding to improve transaction processing speed of Ethereum.

According to data from , current number of accounts Ethereum externally owned (EOA) holding at least 32 fell to a one-month low, from 108,965 on October 22 to 108,949. This is an indication that traders and investors have ignored the prospect of becoming validators for the proof-of-stake (proof of stake).) coming – Ethereum 2.0.

The number of Ethereum 2.0 nodes plummeted, ETH price could reach $6,100

Ethereum address with more than 32 deposits | The source:

Specifically, staking in Ethereum 2.0 requires users to deposit 32 ETH into a specified smart contract address to become a full node validator. In doing so, the sender gains the right to manage data, process transactions, and add new blocks Ethereum upgraded.

That led Glassnode analysts to consider Ethereum addresses with a balance of 32 ETH or more as “potential validators.”

Ethereum 2.0 validator is only for the rich

The recent drop in the number of potential Ethereum 2.0 validators coincides with a steady rally in Ether.

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Notably, the ETH price has increased by nearly 37% in the past 30 days, reaching a new all-time high (ATH) around $4,842 on Nov. 8. In other words, the cost required to become more than $153,000 to become into a full node validator on Ethereum 2.0, up from around $23,600 at the beginning of the year.

Meanwhile, data from StakingRewards.com shows that locking 32 ETH for a year currently produces a percentage annualized yield of 5.42%.

The number of Ethereum 2.0 nodes plummeted, ETH price could reach $6,100

ETH Staking Rewards on Ethereum 2.0 | Source: StakingRewards.com

In contrast, holding ETH in the spot market has produced a return of nearly 1,000% on paper over the past 12 months, with the ability to profit dynamically against potential downside risks.

ETH price target towards $6,000?

The number of Ethereum 2.0 validator addresses dropped at the same time that Ether price was on its way towards $6,000.

ETH An ATH near $4,842 appears as a cup-with-handle breakout, with the ongoing upside momentum expected to continue towards or beyond $6,000, as shown in the chart below.

The number of Ethereum 2.0 nodes plummeted, ETH price could reach $6,100

Daily ETH/USD price chart setup of cup-with-handle pattern | Source: TradingView

A cup with a handle forms after ETH price first rises and then corrects to form a rounded bottom, known as a cup. A bounce to the previous high, followed by a failed breakout attempt above said level.

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Price pulls back again and creates a smaller round bottom, called the handle. Finally, the price returned to the previous high for a second time and successfully broke out to move by the depth of the cup.

Cup depth is over $2,200, placing a profit target on the cup-with-handle model around $6,100. If that happens, the cost required to become a validator will increase to 195,200 USD.

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