CryptoQuant analysts eyeing reasons why big Ethereum sell-off may begin after upcoming hard fork
In a recently published tweet, on-chain data aggregator CryptoQuant indicated that an “ETH mass-selling event” is likely coming soon.
Here’s why they believe traders may begin dumping their Ethereum.
Reasons for a possible massive selloff of Ethereum
Analysts at CryptoQuant believe that there are two main reasons for a potential selloff for Ethereum. The first is a surge of inflows into Ethereum 2.0 deposit contracts, where funds are locked until the Shanghai hard fork. The amount of ETH locked in the contract now accounts for roughly 12% of the total Ethereum supply. Also, the chart shows that the number of depositors is decreasing.
The latter, according to data published earlier by Ethereum, is due half a year after the Merge event, which took place in the middle of September — that is, in March 2023.
Another reason is that the supply of Ethereum on the exchanges keeps decreasing. CryptoQuant experts believe that the upcoming Shanghai hard fork is set to be a major driver for the ETH sell-off, as among other things, it will make it possible for Ethereum to retrace since the contract’s launch in November 2020.
Cardano founder slams Ethereum’s PoS model, here’s why
As reported by U.Today earlier, founder of Cardano (and co-founder of Ethereum), mathematician and billionaire Charles Hoskinson, criticized the staking model implemented by ETH, which requires the staked coins to be locked until Shanghai.
He commented on a public message left by Mika Zoltu, the founder of Serv.eth Support, who said that there are more important things to work on now than to allow withdrawals. He said that those who bet on Ethereum are rich enough if they can send crypto to deposit contracts on ETH 2.0.
Hoskinson stated that unlike stakers of Ethereum, those who stake with Cardano do not have to be rich, and they can withdraw their ADA any time. Actually, they do not have to move their ADA from wallets for staking.
So, according to the tweet from CryptoCompare, stakeholders will likely withdraw their ETH in March (unless the launch date is delayed) and start selling it.
