Why ETH Price Could See Major Selling Ahead?

Amid the crypto broader market correction, the world’s second-largest digital asset Ethereum (ETH) is already down 7.5% trading under $1,200. The recent price crash has eroded all of last week’s gains for ETH.

Now, the cryptocurrency faces the risk of further downfall going ahead. Since the Beacon chain upgrades last year, ETH investors have been staking their coins with Ethereum 2.0. Now, the newly upgrade Ethereum 2.0 blockchain holds 12% of the total supply.

On the other hand, the ETH exchange reserves have dropped down to 15% of the total supply and continue to decline further. However, ETH faces a potential threat to its price as the Shanghai hardfork approaches closer, scheduled for March 2023.

This hardfork will make it possible for investors to withdraw the staked Ether with the network validators. On-chain data provider CryptoQuant explains a scenario that could lead to a mass selling in the price of Ether.

One of the most imminent questions that ETH investors have is how much ETH can be withdrawn on Ethereum 2.0. Nearly 12% of the total supply or 15 million ETH coins currently reside on Ethereum 2.0. Data provider CryptoQuant explains:

“From a short-term perspective, there are higher APY strategies than staking rewards by depositing ETH2 that might not be promised to withdraw”.

Also, let’s have a look at the change in the balances of Ethereum 2.0. Compared to the last year 2021, the total number of depositors with ETH2 has jumped by 57% this year. However, the total deposit balance has remained the same. This shows that the total balance per deposit has ultimately jumped by 133% in 2022.

Commenting on the ETH exchange reserves, CryptoQuant explains: “It may be that the balance of $ETH2 increases as the $ETH exchange reserve decreases. 18M of $ETH are held on the exchange, 15% of the total supply. However, the exchange reserve is an ongoing downtrend”.

As the supply dynamics shift after the Shanghai hardfork, ETH price volatility will be imminent.

Ethereum Price Prediction: drop by -2.24% ($ 1,222)

According to our current Ethereum price prediction, the value of Ethereum is predicted to drop by -2.24% and reach $ 1,222.17 by December 17, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 27 (Fear). Ethereum recorded 15/30 (50%) green days with 3.68% price volatility over the last 30 days. Based on our Ethereum forecast, it’s now a bad time to buy Ethereum.

Ethereum Price Prediction Based on Technical Analysis

According to our current Ethereum price prediction, the value of Ethereum is predicted to drop by -0.94% and reach $ 1,162.65 by December 3, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 28 (Fear). Ethereum recorded 13/30 (43%) green days with 13.59% price volatility over the last 30 days. Based on our Ethereum forecast, it’s now a bad time to buy Ethereum.

Comparing Ethereum against other important technological innovations and trends is one way of predicting where the Ethereum price could head over the long term. The table above shows what the Ethereum price would be by end of year 2023, 2024, and 2025 if its growth trajectory followed the growth of the internet, or large tech companies like Google and Facebook in their growth phase.

In the best case scenario, ETH price prediction for year 2025 is $ 18,232 if it follows Facebook growth. In case Ethereum would follow Internet growth the prediction for 2025 would be $ 3,593.79.