Ethereum price steadies above $1,700 as ETH holders grow confident ahead of token unlock

Ethereum traders remain uncertain about the Shanghai upgrade and the upcoming ETH token unlock event.
Massive volume of Ethereum enters self-custody, 10.31% of ETH supply is on exchanges.
Ethereum price holds steady at the $1,700 level with rising market interest in the altcoin.

Ekta Mourya FXStreet

Ethereum, the second-largest altcoin by market capitalization, is holding steady above the $1,700 level despite the upcoming ETH token unlock where upwards of $28 billion worth of the asset will enter circulation. Analysts have noted a rise in open interest in Ethereum, alongside decline in ETH supply on exchanges.

Also read: Ethereum struggles to keep up with Bitcoin ahead of Shanghai upgrade

Ethereum tokens worth $28 billion to be unlocked soon

Ethereum is set to unlock 14% of its total supply in the first week of April 2023, following its Shanghai Hard Fork. The ETH token unlock is approximately worth $28 billion and it follows the altcoin’s first major upgrade since the Merge in 2022. The event is slated to take place in April 2023 and allows validators to withdraw their staked ETH from the Beacon Chain for the first time since the ETH2 deposit contract went live.

Analysts on crypto Twitter have warned traders against a "sell-the-news" token unlock event, expecting panic sellers and uncertain market participants to shed their Ethereum holdings close to the key event. The downside target for the altcoin is between $1,400 and $1,500 post a sell-off event.

Sometime between March and May you will have a confluence of

- Shanghai Fear/Dumping
- Equities reaching a local bottom
- Market less optimistic about soft landing/rate cuts
- Bottom shorting

At that point if $ETH is $1400-1500 it will be a comfy max long pic.twitter.com/frJZCtdqZm
— Andrew Kang (@Rewkang) March 2, 2023

Ethereum v. Bitcoin rivalry

Mike Novogratz, CEO of Galaxy commented on the Ethereum, Bitcoin rivalry. The crypto influencer expressed his support for both cryptocurrencies and their huge communities. Novogratz reminded users on Twitter that Bitcoin and Ethereum both account for a vast majority of wealth stored in them by market participants.

I don’t understand why many crypto advocates like an either/or proposition. Both $BTC and $ETH have huge communities that believe in their future and are willing to store a bunch of their wealth in them. Make love not war. https://t.co/qj2o37gKMh
— Mike Novogratz (@novogratz) March 26, 2023

10.31% of Ethereum supply is on exchanges, new low

Ethereum percentage supply on exchanges has hit its lowest level since 2015, at 10.31%. Based on data from crypto intelligence tracker Santiment, there is less ETH being held in exchange reserves, when compared to the volume of the altcoin that has been moved to self-custody.

ETH supply on exchanges hits lowest point since 2015

This statistic reveals holders' confidence in the second-largest cryptocurrency ahead of the Shanghai Hard Fork and ETH token unlock.

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.