This development of Ethereum could favor long-term investors, according to…

  • New Report Suggests Ethereum May Be Affected by Selling Pressure Due to Upcoming Hardfork
  • The number of top addresses on Ethereum continued to grow while top traders took long positions on ETH

According to CryptoQuanta cryptanalytic company, Ethereum [ETH] could face a mass sale event in the next few months. This event could be triggered by the Shanghai Hardfork which will take place in March 2023.

Read Ethereum [ETH] Price prediction 2023-2024

The Shanghai Hardfork will allow stakers and validators to withdraw their ETH of the Ethereum beacon chain. According to data provided by CryptoQuant, 12% of the overall Ethereum supply could be withdrawn by stakers after the hardfork.

These stakers continued to grow. Their number has increased by 4.25% in the last 30 days, according to Staking Rewards.

Source: CryptoQuant

Events such as hardforks increase the volatility present in the market. As seen during the merger, Ethereum’s price fell after the event, according to data provided by CryptoQuant.

If the same were to happen after the Shanghai Hardfork, it would interfere and alter the supply and demand dynamics of ETH, which could lead to increased uncertainty.

The current state of Ethereum

Despite the uncertainty that may arise from the upcoming hardfork, large addresses have continued to trust Ethereum.

Insights collected by Glassnode revealed that the number of addresses holding more than 10 ETH has increased and reached an all-time high of 348,743 at press time.

However, the same sentiment was not shared by retail investors. Additional data from Glassnode showed retail investors are hesitant to buy Ethereum. Indeed, the number of addresses holding 0.1 Ethereum hit an 18-month low of 5.13 million addresses.

‘Envy for ETH

Apart from large addresses, major traders have also started showing interest in Ethereum.

The number of long positions taken by top traders has seen a massive spike over the past few days. At press time, 65% of all traders were long on Ethereum.

Source: Coinglass

Whether traders were right to have a bullish view of Ethereum remains to be seen.

At the time of writing, ETH was trading at $1,181.19. Its price has fallen by 7.45% in the past 24 hours, while its volume has increased by 89.88% over the same period, according to CoinMarketCap.

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