• Ethereum network’s on-chain indicators reveal a bullish outlook on the altcoin with the upcoming Shanghai hard fork. 
  • Experts analyze ETH token withdrawals and likely scenarios, arguing that selling pressure could be temporary. 
  • Ethereum price is primed for a rally with the bullish sentiment among holders and the ETH community. 

Ethereum holders are gearing up for the upcoming Shanghai hard fork and token unlock event in April. Experts have considered the different outcomes of ETH token unlock and conclude that the selling pressure on the altcoin will be temporary or short-lived. The altcoin’s on-chain metrics support a bullish outlook, ahead of token unlock. 

Also read: Why Vitalik Buterin is bullish on ZK coins

Ethereum on-chain indicators support bullish thesis for ETH price

Ethereum is being accumulated by retail investors that own less than 0.1 ETH and large wallet investors or institutions that own between 1 million and 10 million tokens. Interestingly, ahead of the announcement of a date for Shanghai hard fork, large wallet holders on the ETH network started shedding their token holdings. 

As seen in the chart below, there has been consistent accumulation of the altcoin by Ethereum holders. 

Ethereum accumulation

Ethereum accumulation

Accumulation of the altcoin is typically considered a bullish sign. The altcoin’s supply across exchanges has steadily declined since March 22. A reduction in ETH supply on exchanges implies there is less Ethereum available for sale and there is a subsequent decline in selling pressure, as seen in the chart below. 

ETH supply on exchanges

ETH supply on exchanges 

Experts have analyzed the upcoming ETH token unlock and concluded that the selling pressure on the altcoin is likely to be temporary. Once the ETH token unlock is complete, altcoins and Ethereum is likely to experience a correction for a short-term before a recovery in prices.

Ethereum total supply declines by $134.7 million, supporting bullish thesis

Ethereum's Merge turned the altcoin deflationary, reducing the supply by nearly 75,000 tokens. This played a key role in the bullish thesis for the altcoin, as without the transition to Proof-of-Stake, total Ethereum supply would have climbed above 2.2 million. This makes the Merge a key event in Ethereum's timeline and the PoS transition supports ETH bulls in their attempts to push the altcoin's price higher.

Ethereum token unlock likely scenarios

Analysts at MacnBTC argue that over 57% of ETH stakers have been able to access liquidity, with both their principal and rewards, in the past several months. This implies that there is less reason to worry about an impending sell off after the Shanghai hard fork. 

At press time, nearly 72% of the stakers are underwater and it is less likely that these entities would shed their ETH holdings at a loss. 

Stakers in profit

ETH stakers in profit

These points fuel a bullish argument and a recovery in ETH price, if there is a pullback or correction following token unlock. 

Analysts target $2,000 to $2,350 for Ethereum price

As Ethereum price consolidates close to key resistance at $1,800, @CryptoJelleNL, a technical expert targets the $2,000 and $2,350 level for the altcoin.

Ethereum price chart

ETH/USDT 3D price chart

Though Ethereum started the month in red, the analyst expects a bullish turnaround in the asset's price in April 2023.

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