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Ethereum (ETH) has been trading well below community expectations since the Shapella upgrade. Though ETH has maintained a crucial support at $1,800, its price is yet to breach what is considered the most critical price points, and it is pegged at $2,000 in the past couple of weeks.
At the time of writing, Ethereum is changing hands at $1,833.20, down 0.86% over the past 24 hours. The suppression Ethereum is experiencing has been sustained in the week-to-date (WTD) period. Within this time frame, the coin is up by a marginal 0.47% within the time under review.
On-chain analysts with the Twitter handle @ali_charts have pointed out a phenomenon that may be responsible for the sustained price stagnation of Ethereum. Drawing on data from Santiment, Ethereum whales holding 1,000 to 10,000 ETH tokens have been selling off their coins over the past two weeks.
#Ethereum whales with 1,000 to 10,000 $ETH have offloaded over 110,000 #ETH in the past two weeks. pic.twitter.com/NBbhhk3coS
— Ali (@ali_charts) May 2, 2023
Within this time, the data showed a total of 100,000 ETH tokens have been offloaded. While the offloading remained loosely undefined, the figures are proof that the Shapella upgrade opened access for more people to liquidate their multi-year locked asset.
Ethereum and its ecosystem's advantage
As far as Ethereum is concerned, it has a very promising advantage based on the growth of its ecosystem. With Layer 2 protocols boosting overall positive sentiment on the network, the series of upcoming upgrades also lends credence to the bright future of the Ethereum blockchain.
Thus far this year, Ethereum has outpaced its prior projections. Earlier in the year, Ethereum was projected to top $1,500, but the digital currency did not just beat this price level; it also surpassed it eventually.
Ethereum has maintained its stance as the second largest blockchain protocol in terms of valuation and the biggest in terms of smart contract hosting. In all, its price stagnation is considered a temporary event that can be reversed at any time.
Tomiwabold Olajide
Arman Shirinyan
