Ethereum Price at the Crossroads: Is $2000 or $1500 Next?

Ethereum Just regained key support at $1,850. Additionally, on-chain data shows that ETH 2.0 validators appear to be re-hypothecating their new withdrawals across protocols. decentralized finance to obtain higher profits. Will this trigger an increase in ETH price in the coming days?

Strong on-chain fundamentals indicate investor confidence in the long-term prospects of the Ethereum network.

ETH is leaving exchanges in droves

In the next few days, there may be profit-taking across the country ecosystem Ethereum. Immediately after the Shappella upgrade is completed, the amount of ETH will be transferred to wallet Exchanges recorded modest gains. This is because ETH2.0 stakeholders and other investors want to prepare for short-term sell-offs and profit-taking schemes.

Over the past week, however, investors have begun moving funds away from exchanges, suggesting that the “crazy” run may be over.

After a massive increase due to the Shapella upgrade, the Glassnode data below shows that ETH deposit balances on exchanges have decreased since April 18.

Specifically, from April 18 to 24, the ETH balance on the exchange decreased by 262,000 pieces. The current market value is $1,866, and a total of $488 million has been transferred out of the exchange in the past five days.


Ethereum (ETH) price and exchange balances, April 2023. source: glass node

Notably, during the recent decline, the amount of ETH held cryptocurrency exchange It has fallen to its lowest level since March 2021. In some concrete terms, this could be seen as a bullish sign for ETH.

First, when the supply of ETH on exchanges decreases, there is less money available for purchase on the open market. This could lead to an increase in the price of ETH as would-be buyers now have to compete for a smaller pool of tokens.

Second, large investors often move their ETH out of exchanges as a long-term holding strategy. This shows confidence in the potential value of the Ethereum network.

If the trend continues this week, a wave of bullish accumulation could spread throughout the Ethereum ecosystem.

ETH shifts from exchanges to DeFi smart contracts

Further corroborating the bullish outlook, the decline in exchange ETH balances appears to coincide with a corresponding increase in the number of tokens locked in DeFi smart contracts.

The Glassnode chart below depicts how the supply of ETH in the smart contract increased significantly. But this only happens after the Shapella upgrade is done.

From April 11th to 13th, about 462,000 ETH was withdrawn from the smart contract decentralized financeSince then, however, more than 600,000 ETH (0.504% of circulating supply) has been deposited back into DeFi protocols on Ethereum.


Ethereum (ETH) Price and Smart Contract Supply, April 2023. source: glass node

Deposits of more than 600,000 ETH flowing into DeFi protocols show that investors are willing to provide liquidity to the Ethereum ecosystem.

This shows that pessimistic investors panic before Upgrade Shapela Confidence is slowly being restored.instead of selling eliminatethey appear to be reallocating their ETH to DeFi protocols for higher returns.

All in all, capital flows can drive the development of decentralized financial applications and profitable platforms. This creates a bullish cycle in terms of liquidity and adoption that increases, leading to greater network value and higher Ethereum prices.

Ethereum Price Prediction

With the current strong bullish momentum in the Ethereum ecosystem, it will not be easy for the bears to break the $1,850 support.

IntoTheBlock Global In/Out data shows that ETH price must break above $1,960 for a bullish reversal to occur. However, the 2.5 million holders who bought 8.4 million tokens at that price seem to have a lot of headwinds.

If Ethereum price can break the $1,960 level, it could be headed for an extended rally targeting the $2,450 level. But around that area, 8.4 million addresses holding 27.8 million ETH could be sold off, which could prevent further price gains.


GIOM price distribution data for ETH. April 2023. source: enter the block

The bullish view will be invalidated if ETH fails to sustain above $1,850. Even so, support from the 2.09 million addresses holding 3.11 million ETH may help stave off this decline. If this level fails, ETH holders can prepare for a sharp drop to the next key support at $1,450.

board take

According to Beincrypto

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