Crypto news: Ethereum near the key resistance zone

Although the successful Ethereum merge did not make Ether's valuation jump, the cryptocurrency is still performing marginally better than Bitcoin during the ongoing rebound. The Ether price is heading for key support near $1,700, where the 200-session moving average runs:

• Since the end of Q2, the amount of Ethereum staked has increased by nearly 7.5%, according to data from Dune Analytics. Nearly 14,000,000 ETH tokens worth more than $2 billion are deposited on the Ethereum blockchain from where it participates in transaction approval and maintains the liquidity and security of the network under the new green 'Proof of stake' model;
• However, as the group of stakers increases, the reward for stakers decreases because it has to be shared among more 'mining pools'. The amount of return on staking is influenced by the amount of total ETH supply (the lower, the better), the amount of transaction fees (currently, the higher, the better), the token 'burn rate' (the higher, the better) and the amount of cryptocurrencies staked (the fewer, the better);
• Until 2023, investors depositing their tokens in the staking pool will not be able to withdraw them from the pool and thus make sales. This possibility will only appear at the time of the scheduled 'Shanghai' update, which is scheduled for next year. According to Arca Funds, a digital asset management company, although it looks as if investors are 'stuck' in the Ethereum protocol at their own request, eventually staking will become the digital equivalent of the well-known bond market;
• Currently, Etheruem for cryptocurrency terms is not a particularly attractive asset in terms of yields. They are close to 10-year US bonds, which this year are offering yields not seen since 2008. However, looking at the significant capital inflows into Ethereum, it is clear that quite a few investors see the investment as safe despite the fact that locking up capital in a cryptocurrency without access to it for almost a year can be dangerous;
• Nevertheless, investors are doing so and in a sense putting Ethereum's staking on par with US 10-year notes, with AAA ratings widely seen as safe. This shows the increasingly strong 'brand' that Ethereum represents in the cryptocurrency market and the high confidence with which the token is pursued by investors.

The number of 'validators' staking Ethereum on the blockchain has risen to the vicinity of 430,000 addresses, making the rewards for staking fall and are now at 4 to 5% per year against the previously expected 9 to 12%. Nevertheless, the number of stakers continues to grow exponentially. Source: Dune AnalyticsEthereum chart, D1 interval. The price is in a medium-term downtrend, however, it managed to break a key downtrend line, this line was received until the second half of October. The bulls are approaching the area of $1690, where we see the SMA200 running. This average has already proved to be an 'impassable barrier' once, in April this year. Back then, the price slid from close to $3500 to $800. The market has an appetite for a rebound this time because there is a good chance that the U.S. central bank will start leaning toward lower rate hikes which could support sentiment among risky assets. The Ethereum price is moving in a short-term uptrend and has outlined a second 'higher low', which could signal a change in trend visible on the horizon. Source: xStation5