- Ethereum locked on the beacon chain reaches new highs as deposits increase.
- Whales start to lose interest in ETH as selling pressure surges.
Ethereum’s [ETH] price experienced greater volatility following the implementation of the Shapella Upgrade. Nonetheless, the Ethereum network has continued to attract significant attention, as evidenced by the peak number of deposits on its beacon chain.
Read Ethereum’s [ETH] Price Prediction 2023-2024
Hitting new highs, but for how long?
According to Nansen’s data, the total ETH locked on the Ethereum network hit a new all-time high since the Shapella upgrade. The total ETH locked reached 18,879,775 ETH as of 24 April.
ETH Locked refers to all ETH that is currently not in circulation, encompassing various categories such as ETH that has been staked on the Beacon chain, ETH that has been deposited to the Beacon contract but is not yet being utilized for validation, and rewards received on the Beacon contract.
However, it is important to note that the amount of ETH waiting for full exit is about 4.7% of the total ETH on the Beacon chain. This includes rewards, which are equal to 894,671 ETH. Additionally, there are 27,809 validators that are currently waiting for a full exit.
It is also worth noting that only 86.4% of validators have successfully updated their withdrawal address to 0x01. For context, validators need to change their addresses from 0x00 to 0x01 to unstake their holdings.
Although the interest in depositing ETH onto the beacon chain was high at press time, the trend could change after all full exits are processed and the number of withdrawals could exceed the number of deposits in the coming days.
This could impact the Ethereum network and increase the FUD surrounding the protocol.
What’s happening with ETH?
Over the last few weeks, whale interest in ETH started to wane. According to Glassnode’s data, the overall number of addresses holding more than 10 ETH just reached a four-month low of 349,078.
One of the reasons for the declining whale interest could be the high MVRV ratio of ETH. Elevated MVRV ratios suggest that Ethereum may be in an overbought position due to a large number of profitable addresses that have the incentive to sell.
Realistic or not, here’s ETH market cap in BTC’s terms
The increasing long/short difference indicated that many short-term holders exited their positions and sold their holdings. The future of ETH’s prices would now lie in the behavior of the long-term holders.