The burn rate of Ethereum (ETH) reached a new high on February 2nd, surpassing the 3,000 burn rate. It is a significant increase in the number of ETH being burned and marks a new high since November 10th, 2022.
The act of burning cryptocurrency refers to the permanent removal of coins from circulation, which is often done as a way to control supply and maintain the value of the remaining coins.
According to the data from OKLINL, the primary sources of this burn were Uniswap and OpenSea. Additionally, the cryptocurrency greed index has stayed around 60 for several consecutive days.
The burning amount of Ethereum reached 3040 on February 2, reaching a new high since November 10 last year. The main burning sources are Uniswap and OpenSea. The cryptocurrency greed index has remained around 60 for several days. https://t.co/fT66f684lJ pic.twitter.com/uToCDwOYZt
— Wu Blockchain (@WuBlockchain) February 3, 2023
Moreover, Coinglass data shows that the funding rate for ETH on Binance is still positive. Analysts use the funding rate to gauge the sentiment of leveraged traders. The higher the funding rate, the more optimistic traders are about the price outlook and the greater their willingness to pay extra to keep their bets for an increase in price.
The second largest cryptocurrency project has taken the lead in upgrades since September 2022’s Merge. The upcoming Shanghai upgrade is also a demonstration of the Ethereum team’s ongoing commitment to their enterprise.
Ethereum (ETH) Price Action
CoinMarketCap data shows that ETH is currently trading at $1,657, representing a decrease in value of about 1.40% from the previous day. Yesterday, the second-largest currency overcomes the key resistance level of $1,700, marking the first time it had reached that level since September 12th, approximately after five months.
Despite the fact that the bull market has not fully taken off yet, ETH has proven to be sustainable, according to Ultra Sound Money.
This past month, Ethereum, the second-largest cryptocurrency, continued to stabilize, as can be seen by the statistics from CoinGecko; in the last 30 days, it gained about 36%. However, in the last seven days, ETH price recorded a 2.9% increase due to being floated within a narrow range between $1,670 and $1,550.
The strong performance in its price rise allowed Ethereum to start trading at levels not seen since before the sudden collapse of FTX.