After the Shapella upgrade is complete, the ETH price has yet to break through the $2,200 resistance level. The on-chain indicator is blinking red as stakers are still ready to sell. Will ETH lose its current support level?
After a positive initial reaction to the completion of the proof-of-stake transition, the second-largest cryptocurrency by market capitalization now faces an uncertain short-term future.Well-known data analysis company IntoTheBlock owns emphasize After the Shapella upgrade, the amount of ETH batch transfers has been increased. As ETH 2.0 stakeholders start looking for other avenues to deploy their newly minted assets, will this negatively affect ETH price?
Staker launches a large amount of ETH on the exchange
According to Glassnode, the supply on exchanges has increased by 100,000 ETH in the past week. Often, this means investors who want to sell can now do so more quickly and easily.
The graph below shows that between April 13 and April 17, the ETH balance on exchanges increased from 18.09 million to 18.2 million.
ETH prices and balances on exchanges in April 2023 | Source: glass node
When an exchange holds more tokens, it usually means holders are willing to trade. As more and more ETH 2.0 stakers exit, they may quickly build selling pressure and risk a price correction in the coming days.
Additionally, an analysis of total order books on selected exchanges shows that the amount of ETH currently being sold at current prices exceeds demand.
According to data compiled by IntoTheBlock, around the +/-30% price boundary, there are 6 million ETH worth of open sell orders. But currently, buyers have only placed orders for 5.2 million ETH.
ETH price distribution in exchange order books April 2023 | Source: IntoTheBlock
When there are more sell orders than buy orders in an exchange’s order book, it usually means that there is more supply than demand for the asset being traded. As a result, prices are threatened as sellers may have to lower prices to attract buyers.
All in all, the flow of ETH across exchanges indicates potential selling pressure from new uncollateralized tokens and order books on exchanges are skewed to one side, both of which could trigger a price correction.
ETH Price Prediction: Bulls Provide Support Around $1,850
The In/Out of Money indicator continues to suggest that ETH price may retrace to $1,980. However, the 972,000 addresses that bought 1.36 million at an average price of $1,980 provide support.
If the decline continues, ETH is expected to slide further to $1,850. But here, there is a more significant line of support with 1.42 million addresses containing 5.77 million coins.
ETH In/Out Currency Price Distribution April 2023 | Source: enter the block
However, the bulls will invalidate the bearish outlook if ETH breaks the $2,100 resistance. Here, 632,000 addresses holding nearly 20 million ETH present a significant challenge.
If the bulls can break through this level, the price will reach $2,400 before hitting another important resistance level at 500,000 tokens at 600 addresses.
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Mingying
According to Beincrypto
