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- 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.
🚨 $ETH Is a sell-off event coming up?
1/ The #ETH2 The deposit has accumulated, with 12% of the total supply.
As the $ETH the foreign exchange reserve is reduced to 15% of the total supply and continues to decrease,
what will happen in $ETH after the Shanghai Hard Fork?🧵https://t.co/RrFQrLPeda pic.twitter.com/CrWhqSbxPn—CryptoQuant.com (@cryptoquant_com) December 16, 2022
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.
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.
6/ After the Merger, the offer began to decline; 0.1M🔥
The supply and demand dynamics will change after the fork, $ETH price volatility is imminent.
Will #Carry off trigger the sell-off?
Or is it an opportunity that provides more liquidity 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 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.
📉 #ethereal $ETH Number of addresses with more than 0.1 coins just hit an 18-month low of 5,137,105
Previous 18-month low of 5,137,296 was observed on December 12, 2022
See metric:https://t.co/rW81qhwy4d pic.twitter.com/tQyhuPwkXE
— glassnode alerts (@glassnodealerts) December 16, 2022
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.
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.
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