Key Insights
- •The Royal Government of Bhutan has moved 320 ETH for staking on Figment.
- •This move follows the government's decision to anchor its national digital identity system on Ethereum.
- •ETH price shows upward momentum ahead of the Fusaka upgrade, with analysts forecasting a potential rise to $3,400.
Bhutan Government Commences ETH Staking
In a significant development for Ethereum, the Royal Government of Bhutan has staked 320 ETH on the institutional staking platform Figment. This action is a direct consequence of Bhutan's decision to utilize Ethereum as the foundation for its national digital identity system. The question now is whether this endorsement from the Bhutanese government can propel ETH's price beyond the critical $3,400 mark.
On November 27, Onchain Lens reported that the Royal Government of Bhutan transferred 320 ETH, valued at approximately $971,000, to Figment for staking purposes. This marks the first instance of the Bhutanese government utilizing its ETH holdings for staking. Previously, the wallet associated with the Bhutan government was primarily known for selling ETH.
Over the past year, this wallet has divested 1119 ETH, totaling $2.2 million. Despite these sales, the Bhutan government continues to hold 336.021 ETH, currently valued at over $1.02 million. Additionally, the wallet contains 6154.338 BTC, worth approximately $562.35 million, even after substantial Bitcoin sell-offs by the government in recent times.
Bhutan's National ID System to Leverage Ethereum
The recent transfer of ETH to Figment appears to be directly linked to the Bhutanese government's strategic plan to build its national digital identity system on the Ethereum blockchain. The initiative was attended by Vitalik Buterin and Aya Miyaguchi of the Ethereum Foundation, who highlighted Ethereum's potential to provide governments with open infrastructure for secure, sovereign, and verifiable public identity systems.
This development represents a significant national achievement for Bhutan and a notable global step towards the widespread adoption of open and secure digital identity solutions. The full migration of credentials is anticipated to be completed by the first quarter of 2026.
Prospects for ETH Price Rally
Ethereum has successfully reclaimed the significant $3,000 psychological level, buoyed by a recent resurgence in the broader cryptocurrency market. Analyst Ted Pillows suggests that if bulls can maintain this level, a rally towards $3,400 is plausible. However, failure to hold this support could see ETH price decline below the $2,800 zone. Inflows into spot Ethereum ETFs are currently contributing to the positive price momentum.
Furthermore, the upcoming Ethereum Fusaka upgrade, scheduled for December 3, is another catalyst that could influence ETH's price. Historically, the previous Pectra upgrade saw ETH experience a 50% price increase. The market is watching to see if a similar surge will occur this time.
Ethereum has seen a more than 3% increase in the past 24 hours, with the price currently trading around $3,005. The daily trading range has been between $2,900 and $3,070. Trading volume has seen a slight increase, indicating a cautious sentiment among traders.
On the daily chart, ETH is trading below both the 50-day and 200-day simple moving averages. However, the Relative Strength Index (RSI) is rising above 40, suggesting potential for further upward movement.
Data from CoinGlass indicates selling pressure in the derivatives market. The total ETH futures open interest has risen by nearly 3% to $36.61 billion in the last 24 hours. Nevertheless, ETH futures open interest on CME and Binance have decreased by over 1% and 1.6%, respectively. This suggests that derivatives traders are exercising caution ahead of the monthly options expiry scheduled for Friday.