The Ethereum price has inched upwards by 0.4% in the past 24 hours, rising to $1,729 after Ethereum developers proposed raising the deposit requirement for validators from 32 to 2,048 ETH.
The aim of this proposal – which represents an increase of 6,300% – is to reduce waiting times for setting up a validator node, which currently stands at just over 40 days.
However, increasing the requirement may further increase the centralization of staking, which could increasingly become the preserve of larger holders and platforms.
This possibility doesn’t seem to have affected the ETH price, however, with the altcoin down by only 1% in a week and yet up by 54% in the last 12 months.
Ethereum Price Prediction as Developers Consider Raising Validator Limit from 32 to 2,048 Ether – How Will ETH Price React?
Ethereum’s chart suggests that the coin may be close to a recovery, with its indicators beginning to show a little life after the SEC-caused slides of the past couple of weeks.
Its 30-day moving average (yellow) has begun climbing again towards its 200-day average (blue), implying that it may rise all the way up in parallel with ETH’s price.
At the same time, the altcoin’s relative strength index (purple) has returned to 50 after spending the end of last week at or below 30, which suggests overselling.
This means that ETH is in a position to rally again, a view also suggested by its support level (green), which is rising encouragingly.
On the other hand, recent whale data suggests that at least some larger investors may be preparing to sell, with one particular holder sending more than $50 million in ETH to Coinbase today.
Of course, you could just as easily flip this around and argue that this whale is anticipating a rally in the coming days, and may be looking to profit rather than simply ‘dump.’
Or you could even suggest that it’s being moved to Coinbase for staking purposes, something which some observers claimed in response to a very similar ETH transfer to Coinbase yesterday.
On the subject of staking, Ethereum developers are now discussing whether to raise the minimum staking requirement from 32 ETH to 2,048 ETH, something which could put staking out of reach of some users and investors.
On the other hand, some commentators have noted that such an increase will reduce Ethereum’s traffic, given that the lower requirement forces big staking platforms – such as Lido and various exchanges – to unnecessarily run a larger number of nodes.
Because of this, the proposal may end up being bullish for Ethereum, although it’s unlikely to have a massive impact on its price if accepted.
But then again, if it does remove practical barriers to staking, it may increase Ethereum’s staking ratio, something which would take more ETH out of circulation.
And with less ETH in circulation, the altcoin’s price should potentially rise, possibly regaining $2,000 in the next few months.
New Altcoins
Given that ETH remains one of the most established tokens in the market, its gains this year may be very incremental, especially when conditions are still largely bearish.
Traders looking for bigger and shorter term gains may therefore be more interested in newer altcoins, particularly those that are holding their presales and on course to list on exchanges for the first time.
For example, Wall Street Memes (WSM) is a new altcoin that has already raised more than $8.7 million in its presale, which began only a few weeks ago.
Emerging out of the meme stocks movement that was responsible for the 2021 GameStop and AMC rallies, WSM has clearly attracted a significant following, despite the fact that its token hasn’t even listed on exchanges yet.
Its Twitter account boasts over 234,000 followers, a number which suggests that the new meme token will have quite a community of holders at its disposals, ready to support and boost its price.
Given its popularity, and given that it stems from a relatively big online movement, WSM could therefore become one of the biggest new meme tokens of the year when it lists in the next few months.
Investors can enter the presale by visiting the official Wall Street Memes website and connecting their crypto wallets.
The sale is currently in its 15th stage, with 1 WSM now costing $0.0295, with this price scheduled to climb to $0.03370000 by the time the final, 30th stage gets underway.
Visit Wall Street Memes Now
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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