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


  • New Report Suggests Ethereum Could Be Affected By Selling Pressure Due To Upcoming Hard Fork
  • The number of large Ethereum addresses continued to grow as major traders took long ETH positions.

According to cryptoquantificationa cryptanalysis company, Ethereal [ETH] could face a sell-off event in the coming months. This event could be triggered by the Shanghai Hard Fork which will occur in March 2023.

Read of ethereal [ETH] price prediction 2023-2024

Shanghai Hardfork will allow participants and validators to withdraw their ETH of the Ethereum beacon chain. According to the data provided by CryptoQuant, stakeholders could withdraw 12% of the total Ethereum supply after the fork occurred.

These stakeholders continued to grow. Their number increased by 4.25% in the last 30 days, according to participation rewards.

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Source: CryptoQuant

Events like hard forks increase the volatility present in the market. As observed during the merger, the Ethereum price crashed after the event, according to data provided by CryptoQuant.

If the same were to happen after the Shanghai Hardfork, it would interfere and change the supply and demand dynamics of ETH, potentially leading to further uncertainty.

The current state of Ethereum

Despite the uncertainty that could arise from the upcoming hard fork, the big addresses continued to show faith in Ethereum.

Data collected by Glassnode revealed that the number of addresses with more than 10 ETH increased, reaching an all-time high of 348,743 at press time.

However, retail investors did not share the same sentiment. Additional data from Glassnode showed that smaller investors avoided buying Ethereal. This was because the number of addresses with 0.1 Ethereum hit an 18-month low of 5.13 million addresses.

Craving ETH

Along with the big addresses, major traders also started to show interest in Ethereum.

The number of long positions taken by major traders saw a massive increase in recent days. At press time, 65% of traders overall were long Ethereum.

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Source: Coinglass

It has yet to be determined whether traders were right in having a bullish outlook on Ethereum.

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