by - 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.
🚨 $ETH The mass sale event is coming?
1/ The #ETH2 The deposit amassed, holding 12% of the total supply.
As the $ETH the foreign exchange reserve falls to 15% of the total supply and continues to decline,
What’s going to happen $ETH after the Shanghai Hard Fork?🧵https://t.co/RrFQrLPeda pic.twitter.com/CrWhqSbxPn— CryptoQuant.com (@cryptoquant_com) December 16, 2022
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 According to data provided by CryptoQuant, 12% of the overall Ethereum supply could be withdrawn by stakers after the hardfork.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.
6/ After the merger, supply started to decline; 0.1M🔥
Supply and demand dynamics will change after the fork, $ETH price volatility is imminent.
Will be #Shanghai trigger a mass sale?
Or is it an opportunity that offers more cash to buy more $ETHhttps://t.co/BeARRlcN4e pic.twitter.com/y09OdkC6z7— CryptoQuant.com (@cryptoquant_com) December 16, 2022
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.
📉 #Ethereum $ETH The number of addresses holding more than 0.1 coins just hit an 18-month low of 5,137,105
The previous 18-month low of 5,137,296 was observed on December 12, 2022
View metric: https://t.co/rW81qhwy4d pic.twitter.com/tQyhuPwkXE
— glassnode alerts (@glassnodealerts) December 16, 2022
‘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.
