EIGEN is about to unlock nearly 1.8 million USD in Tokens, can the EigenCloud Mainnet update offset the sell pressure? | EIGEN Price Prediction

EigenCloud ( original EigenLayer ) native Token EIGEN is showing a fluctuating consolidation pattern on the eve of approximately 1.76 million dollars worth of Token unlocking. The current price is 1.340 dollars, down 8% in 24 hours, but still maintaining a 24% rise for the month. Both volume and open interest have declined, with a strong market wait-and-see sentiment. The technical indicators show that the key support level is in the range of 1.25-1.30 dollars, and the narrowing Bollinger Bands indicate a drop in volatility. Despite the recent upgrades of the "redistribution mechanism" and "multi-chain validation" on the Mainnet, the short-term sell pressure brought by the unlocking remains the market focus.

EIGEN price fluctuates under pressure, unlocking event triggers market caution The native token EIGEN of EigenCloud is currently trading at $1.340, having fallen 8% in the past 24 hours, but still maintaining a 24% rise over the past month. Nevertheless, the token is down 76% from its historical high of $5.65 reached in December 2024. Spot trading volume has decreased by 4.5% to about $89.5 million, indicating a decrease in spot trader activity. In terms of derivatives, according to Coinglass data, open interest has dropped over 10% to $73.2 million, and total derivatives trading volume has slightly decreased to $401 million. Traders seem to be reducing risk exposure ahead of a key support test.

$1.6 million Token unlocking is approaching, key support level is under test Token Unlocks data shows that approximately 1.3 million EIGEN Tokens (worth about $1.76 million) will be released into the circulation market on July 29. Although this scale is not large compared to the Token's $2.3 billion fully diluted valuation, this unlocking coincides with the price resting on the key support level of $1.25-1.30. This release may increase short-term supply pressure and test the confidence of existing holders. As open interest and volume decline, traders may become more cautious in the lead-up to the unlocking.

The two major upgrades of the Mainnet have been implemented, expanding the capabilities of the EigenCloud ecosystem Before this unlocking, the protocol completed two major updates:

1. Reallocation Mechanism Goes Live on Mainnet (July 22): The long-awaited reallocation mechanism has been deployed to the mainnet. This mechanism allows funds from confiscated Active Validation Services (AVS) to be redistributed rather than directly destroyed. This adds greater flexibility for AVS design, especially for teams using unique economic models.
2. Multi-Chain Verification Launch (July 24): The protocol announced the launch of multi-chain verification functionality, initially deploying it on the Base network. This allows AVS to verify states across Layer 2 networks while maintaining Ethereum-level security. Based on this significant upgrade, EigenCloud's broader role in the Ethereum shared security ecosystem is gradually evolving.

EIGEN Technical Analysis: Contraction in Fluctuation, Waiting for Directional Decision

On the daily chart, the price of EIGEN is fluctuating between $1.25 and $1.49, with the Bollinger Bands narrowing, indicating a drop in volatility. Several key indicators show a neutral market sentiment:

• The Relative Strength Index (RSI) is currently at 49.9, close to neutral level.
• The momentum indicator is slightly negative, and the MACD has recently formed a death cross (crossing below the signal line), releasing a bearish signal.
• The Williams %R and Stochastic RSI are hovering in the oversold territory but have not reached extreme levels, suggesting uncertainty in the market rather than a clear reversal signal. The moving averages show divergence:
• The 30-day, 50-day, and 100-day moving averages maintain a mild bullish structure.
• The 10-day and 20-day short-term Exponential Moving Averages (EMA) and Simple Moving Averages (SMA) indicate selling pressure. This indicates that there is overall uncertainty in the market. If the key support level at $1.25 is breached, the next support level is around $1.10. Conversely, if it can effectively break through and hold above $1.50, it may open up upward space towards $1.75. Currently, traders seem more inclined to wait for the token unlocking event before choosing a direction.

Conclusion: EigenCloud continues to expand its value boundaries in the Ethereum ecosystem (especially in AVS design and cross-chain security) through upgrades like the Mainnet "redistribution mechanism" and "multi-chain verification." However, the short-term market focus remains on the upcoming EIGEN Token unlocking event. The resilience of the key support area around $1.25-$1.30 will be tested, and the technical pattern of oscillation compression also reflects the market's cautious wait-and-see attitude. The actual selling pressure strength post-unlocking and the progress of the protocol fundamentals will be key factors in determining the next movement of EIGEN.