EIGEN, the native token of EigenCloud (formerly EigenLayer), is showing signs of compression on the charts just as a $1.6 million token unlock approaches.
Summary
- EIGEN trades near $1.34, down 8% daily but up 24% monthly.
- A $1.6M token unlock on July 29 may impact short-term price direction.
- Technicals show a squeeze forming as support is tested and volume dips.
The token is trading at $1.34, down 8% over the past 24 hours, but still holding a 24% gain over the past month. Despite the recent upward trend, EigenCloud (EIGEN) is 76% below its all-time high of $5.65 set in Dec. 2024.
Trading volume has decreased 4.5% to approximately $89.5 million, indicating that spot traders are losing ground. On the derivatives side, open interest has fallen more than 10% to $73.2 million, and total derivatives volume has slipped slightly to $401 million, as per Coinglass data. Traders seem to be dialing down risk ahead of what could be a key test of support.
Eigen token unlock to pressure support
According to data from Token Unlocks, roughly 1.3 million EIGEN tokens, valued at around $1.86 million, will be released into the market on July 29. While not massive compared to the token’s $2.3 billion fully diluted valuation, the unlock arrives at a time when the price is already leaning on key support near the $1.25–$1.30 range.
The release may increase short-term supply pressure and test the strength of existing holders. As open interest and volume decline, traders might become more cautious in the run-up to the unlock.
Updates expand EigenCloud’s reach
The unlock follows two major protocol updates. EigenCloud deployed its long-awaited Redistribution mechanism to the mainnet on July 22. This allowed funds from slashed Actively Validated Services to be repurposed rather than being destroyed. This adds more flexibility to AVS design, especially for teams building with unique economic models.
Subsequently, on July 24, the protocol revealed Multi-Chain Verification, initially launching on Base. This enables AVSs to retain Ethereum-level security while verifying state across layer 2 networks. EigenCloud’s wider role in Ethereum’s (ETH) shared security landscape is evolving, based on this major upgrade.
Eigen technical analysis
On the daily chart, EIGEN is caught between $1.25 and $1.49, with the Bollinger Bands narrowing, reflecting reduced volatility. Neutral sentiment is shown by a number of important indicators. While momentum is slightly negative and the MACD recently turned bearish by crossing below its signal line, the RSI is currently at 49.9, close to equilibrium.
Williams %R and the stochastic RSI both hover in oversold territory, but not at extremes, indicating uncertainty rather than a definite reversal. Moving averages are divided.
While longer-term 30-, 50-, and 100-day averages continue to support a mildly bullish structure, short-term EMAs and SMAs (10- and 20-day) indicate selling pressure. This shows broader market uncertainty.
The next support is located near $1.10 if $1.25 breaks. On the upside, a sustained move past $1.50 could open room toward $1.75. For now, traders appear to be waiting for the unlock to pass before committing in either direction.
