Ethereum (ETH) is under immense selling pressure following the collapse of the cryptocurrency exchange FTX. According to Ali Martinez, ETH whales sold close to a million coins in December 2022, adding to investor angst. Martinez indicated that whales holding between 10K and 100K ETH sold or redistributed around 880,000 coins.
At press time, trade volume has fallen by 3.05% in 24 hours. However, a day earlier, trade volume went up 23% to $4.5 billion, while the market cap declined by 2%.
Ethereum has had a challenging year, with its value falling by 75.5% from its all-time high and 70.4% in only one year. Many are worried that ETH’s value could drop further as we enter the new year. ETH has fallen below $1200, and it could continue to plummet if it does not climb above $1215. Moreover, issuance has increased since mid-December.
What could push Ethereum upwards?
The most likely scenario, with issuance increasing, would be an increase in coin issuance with a gradual decrease in supply following the new year. If more investors return to the market and generate more activity, the burning mechanism on the market will accelerate.
However, Guy of Coin Bureau, a well-known cryptocurrency expert, predicts that Ethereum might have a remarkable year in 2023. Guy thinks the impending Ethereum Shanghai upgrade would cause Ether’s trend to reverse. The Shanghai upgrade will make its debut in Q1 2023.
The analyst expects that investors will be drawn to stake their tokens for a potentially stress-free investing experience if billions of dollars worth of ETH locked up in smart contracts are released. Among other things, the Shanghai upgrade will make it possible for ETH stakers and validators to withdraw funds from the Beacon Chain.
At press time, ETH was trading at $1,194.74, up by 0.2% in the last 24 hours. However, the cryptocurrency is down by 8.8% in the last 14 days.