Ethereum Addresses Holding 32 ETH Hit One-Month Low Amid Price Rally

Recent Decline in Ethereum Addresses

As of November 9, the number of Ethereum addresses holding 32 or more Ether (ETH) has dipped to a one-month low. Only 108,949 externally owned accounts (EOAs) boast this balance, down from 108,965 reported on October 22. This subtle decline raises eyebrows, especially since this group of addresses represents potential validators for Ethereum’s proof-of-stake upgrade, known as Ethereum 2.0.

The Stakes of Becoming a Validator

In Ethereum 2.0, staking is akin to raising your hand and saying, “I want to be part of the cool kids’ club!” To become a full node validator, you need to deposit a hefty 32 ETH into a designated smart contract. In essence, you’re not just a bystander anymore; you get to manage data, process transactions, and add new blocks. So, it’s clearly not a small commitment.

Wealthy Validators on the Rise

The recent dip in the number of potential validators coincides with a remarkable spike in Ether’s price—up nearly 37% over the past month and peaking around $4,842 on November 8. At this price, the cost to step up as a validator has shot up to over $153,000, compared to only about $23,600 at the beginning of the year. Who knew becoming part of the blockchain elite could be so pricey?

Staking Yields Versus Spot Returns

While staking 32 ETH gives you an annual percentage yield of 5.42%, holding onto ETH as a spot investment has provided a staggering return—almost 1,000%—over the last year. Not to mention, as a spot holder, you have the freedom to cash out and take profits whenever the urge strikes (or panic sets in!).

The Cup and Handle: A Price Prediction Model

As Ether prepares for a potential run to $6,000, the market seems to be buzzing about a price pattern known as the Cup and Handle. Think of it as a sip-worthy tea cup you’d find in your grandma’s china set. The price initially rallies, then corrects, forming the rounded ‘cup’ before testing that previous high again (handle). If it breaks out, predictions suggest targets of at least $6,100, which would further inflate the requirements to be an ETH 2.0 validator to nearly $195,200. Ouch!