Ethereum (ETH) has seen a stellar 43% price appreciation this year, yet the market’s sentiment towards the trailblazing smart contract network is still divided. Following The Merge and with Ethereum Improvement Proposal 1559 in effect, ETH became deflationary as of December 2022; however, its current value remains largely unchanged from when it initially happened. To determine where Ethereum whales will land in the next few weeks leading up to and after the Shangai hard fork, let us explore some on-chain data for further information.
Ethereum Stabilized After the Upgrade News
Currently, Ethereum has been up 36% since the start of 2023. But other top altcoins such as Cardano (ADA), Polygon (MATIC), and Solana (SOL) have seen even greater gains, with 57%, 62%, and 132% growth, respectively. After the January 31 announcement of the Zhejiang testnet (a part of the preparation for the Shangai hard fork) that would allow testing of the staking withdrawal functionality, ETH remained stable around the $1,600 mark. However, whales’ interest in Ethereum tokens decreased in the same period. On-chain data from Santiment shows that large transactions between $100,000 and $1 million have persistently dropped since mid-January.
On The Other Hand, The Activity In The Network Decreased
As February opened its doors, the Ethereum network experienced a decrease in activity. The daily transaction volume plummeted from 1.18 million to significantly less than 800,000, according to Sentiment’s data – but despite this considerable dip, ETH maintained its $1,400 support unharmed.
The IntoTheBlock In/Out of the Money (IOMAP) data illustrates that Ethereum is more likely to break through the $1,700 resistance than lose its current support at $1,400. IOMAP gathers details by comparing purchase prices stored in wallets with the present values. According to this analysis, Ethereum has been able to hold off selling pressure as fewer holders could hit a potential resistance level. A large number of participants who are “in the money” have stepped forward and absorbed any market pressure coming their way.
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