Approximately $5.4 billion worth of ETH was burned with nearly 2,000 ETH being removed from circulation daily.
Ethereum has already burned $5.4 billion in ETH
The ETH burn process, implemented on August 5, 2021, is enabling the gradual withdrawal of fees from the network and decreasing the amount of ETH circulating in the market.
The number of ETH burned has been progressively increasing since the update was activated. Burning increased significantly during the NFT and DeFi craze, when the network was almost constantly congested. But then it stabilized at around 2,000 ETH/day.
The supply shock concept has been touted as a major achievement for the second largest cryptocurrency on the market. After all, most traders and investors expected that during the new bull run, the available supply of ETH would not be able to cover the existing demand.
According to the WatchTheBurn service, transaction fees on the network are now significantly lower than they were before the update was implemented.
Now traders, developers and investors can carry out a transaction with as little as 18 Gwei, while the price for the same stock previously was approximately 50-60 Gwei.
Meanwhile, regarding the cryptocurrency price, investors are still not seeing the full effect of the supply shock. This is because the price of ETH has lost more than 45% of its value since its all-time high.
Analyst Akash Girimath highlighted that in the short term, ETH bulls are eyeing a retest of the 50-day Simple Moving Average (SMA) at $2,771.
As the analyst pointed out, a breakout of this level will pave the way for ETH bulls to retest the daily supply zone, extending from $3,188 to $3,393.
“A move beyond this resistance area seems unlikely due to the 100-day SMA. Therefore, investors can expect the ETH price to form a local top around $3,200.”