- Ethereum holders sold over 70,000 ETH worth $113 million as the altcoin shot up by 12%.
- Ethereum validators that have staked since December 2020 currently face unrealized losses of $4.7 billion.
- Depositors with over 500 validators share 76% of the unrealized losses, which will prevent them from selling until the price goes up, making a bullish case for ETH.
Ethereum Shanghai upgrade is right around the corner, and ETH holders are waiting in anticipation of a further price increase. At the same time, one of the biggest concerns of the market about whether validators would unstake and sell their ETH may no longer hold any significance.
Ethereum price rise might keep investors on hold
Ethereum price over the last two weeks has noted gains worth nearly 12% as the Shanghai upgrade approaches. Set to go live on April 12, the market is expecting a two-way spike in prices, but a spike lower seems less likely.
The fear of $32 billion worth of staked ETH being unlocked would lead to selling is potentially going to dissipate. This is because the validators that have been depositing their ETH on the Beacon Chain since December 2020 are looking at significant losses at the moment.
The unrealized losses currently amount to more than $4.7 billion, which is a remarkable improvement from July 2022, when these losses stood at $16 billion.
Ethereum validators’ unrealized losses
Despite Ethereum price breaching $1,900, validators are still underwater. Furthermore, the depositor that owns more than 500 validators bears 76% of the losses. This will keep them from selling until at least their ETH hits theirbreak-even price point. And by the looks of it, ETH holders might follow the same strategy.
Shifting from accumulation to selling in the last two weeks, these investors have sold over 70,000 ETH worth $113 million. But this may not continue for the next few days, thanks to the uncertainty surrounding the price action.
Ethereum supply on exchanges
Besides, as per the Market Value to Realized Value (MVRV) ratio, the cryptocurrency is still far from the danger zone. This zone is historically synonymous with selling, and in the case of Ethereum, it sits between 10% to 40%. At the moment, the MVRV ratio is far below at 5.8%, which means that there is still a while before investors turn to profit-taking.
Ethereum MVRV ratio
If, in this duration, the broader market cues continue to remain bullish and Ethereum price keeps on climbing the chart, selling eventually could yield substantial profits
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin, Ethereum, XRP gain slightly on Monday, traders prepare for US macro release this week
Bitcoin hovers around the $63,000 level on Monday, almost flat in the day. Ethereum ranges around the psychologically important $2,500 level as creator Vitalik Buterin pledges 100 Ether to support Tornado Cash developer.
Is “Uptober” here for Bitcoin?
Bitcoin stabilizes at around $63,000 on Monday. US spot Bitcoin ETF experienced outflows week-on-week. NYDIG report highlights that Bitcoin remains the best-performing asset this year, with a 49.2% year-to-date gain.
Why Bitget’s exchange token slumped 50% on Monday, what to expect from BGB
Bitget’s exchange platform token BGB suddenly erased 50% of its value on Monday, slipped to a low of $0.5344. The reason behind the slump is currently unknown; the OKX exchange token was in a similar situation in January 2024.
Is Dogecoin ready for a rally?
Dogecoin price finds support around the descending trendline breakout level, eyeing a rally ahead. DOGE’s daily active addresses spiked to the highest level since early April.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.