Ethereum price explodes, ETH deposits pick up pace

Ethereum price witnessed a massive spike after the successful completion of its Shapella upgrade. The altcoin climbed to the $2,100 level after crossing key resistance at $2,000. There is a spike in ETH withdrawals, however analysts have noted a rise in deposits on the ETH2 contract and this is a bullish sign for the asset. 

Also read: Ethereum price rally to $2,000 is fueled by these catalysts and macro moves

Ethereum price made an explosive move to $2,100

Ethereum hit several developmental milestones since 2022. With the successful completion of its Merge, a transition from Proof-of-Work to Proof-of-Stake, and smooth Shapella upgrade, the altcoin wiped out its losses since August 2022 and climbed to the $2,100 level in a swift move on Thursday. 

ETH/USD 4H and 5 min price charts 

The explosive moves in Ethereum’s price were catalyzed by the shifting macroeconomic outlook, and a recovery in risk assets like BTC and ETH. Ethereum’s run up to $2,100 was marked with a flurry of social media mentions and activity. 

Ethereum social media activity climbs 

The Ethereum network witnessed a spike in social media activity. Ethereum social activity has spiked following the smooth completion of the Shapella upgrade. With more than 395 million mentions on social media platforms like Twitter per hour and upwards of 32,681 mentions an hour, there is a flurry of activity surrounding Ethereum. 

Ethereum social media activity 

Ethereum’s price climbed consistently alongside a flurry of activity from crypto market participants on social media platforms. This is a bullish sign for crypto market participants. While Ethereum bulls are pushing the altcoin's price higher, analysts believe the asset may have kicked off a mini "alt season" fueling a narrative of capital rotation from Bitcoin to altcoins. 

Did Ethereum kick off the alt season?

Crypto Faibik, a technical analyst and trader notes that the alt season has officially kicked in. With Bitcoin price stable above the $30,000 level and Ethereum back above $2,000, there is a bearish divergence in Bitcoin's dominance chart. Faibik has identified these as the signs of alt season and predicts a massive breakout in altcoins.

Total crypto market capitalization

Faibik's thesis is that Ethereum's big break above $2,000 was key to rallies in other altcoins. Ethereum price climbed past key resistance levels, however technical experts are aware of the possibility of a price decline in the asset. 

What are the targets for Ethereum's liquidation

Justin Bennett, technical analyst and trader notes that liquidation level delta is hitting extremes in the case of Ethereum. There are a series of long liquidations down to the $1,821 quarterly open as seen in the chart below.

Ethereum liquidation levels

If Ethereum price nosedives, the altcoin could find strong support at $1,821, as liquidation levels are concentrated above this price level. Experts have noted a spike in deposits to the ETH2 contract, after token unlock was enabled in the Shapella upgrade. This fuels a bullish sentiment among holders as higher volume of staked ETH implies less Ether in circulation and a reduction in selling pressure on the altcoin in the long-term.