Since past few days, Ethereum bulls were having a tough time as the second-largest crypto by market cap was under a correction phase. However, ETH Price has managed to break through the $3,200 support line today.
In mid-march, Ethereum did spike at $3,581 but couldn’t stick on to the range for a long time and entered into the correction phase. At press time Ethereum is changing hands at $3,265 with a surge of 1.34% over the last 24hrs. The next 24hrs look crucial as Ethereum should surpass the $3,300 level to continue the bull rally.
Ethereum Tokens Burn Rate Shoot Up
As per the recent data, Ethereum’s daily burn rate is a few numbers away from overtaking the speed at which new tokens are minted. This in turn will reduce the ETH supply fueling the Ethereum price.
The increased ETH burning looks like the result of surged NFT minting activities. It is to be noted that the Ethereum Blockchain is the largest NFT platform that is generally minted by burning a fractional amount of ETH tokens.
Ethereum Gets Into Deflationary Zone
The Crypto researchers, IntoTheBlock, states that Ethereum’s net daily issuance has recently hit a two-month low of 0.87%. Net daily issuance refers to the ratio of minting to burning and this drop below 0 will classify ETH under the deflationary zone.
In the first week of January, Ethereum’s net daily issuance was below 0 and during this period, Ethereum had surged as much as 10%. Hence, with the present net daily issuance positioning below 0, we could see a price surge.
Three Arrow Capital Adds $101 M Worth ETH
The hedge fund manager, Three Arrows Capital, added nearly 31,345 Ethereum which is worth about $101 million on April 7. Yesterday, while Ethereum was trading around $3170, the hedge fund manager took the ‘buy the dip’ opportunity to add more Ethereum.
The Etherscan data reveals that there was a transfer of 31,345 ETH worth $101,759,034 to the Three Arrows Capital wallet address. To buy these numbers of Ethereum, Three Arrow Capital sold more than $100 million USDC from the same wallet.