Ethereum locked on the beacon chain hits new highs as deposits increase. Whales are starting to lose interest in ETH as selling pressure mounts.

Ethereum [ETH] price experienced greater volatility after the implementation of the Shapella upgrade. Nevertheless, the Ethereum network continues to attract a lot of attention, as evidenced by the peak number of deposits on its beacon chain.

Read Ethereum’s [ETH] Price forecast 2023-2024

Reach new highs, but for how long?

According to Nansen facts, the total ETH locked on the Ethereum network hit a new all-time high since the Shapella upgrade. The total locked ETH reached 18,879,775 ETH on April 24.

ETH Locked refers to all ETH not currently in circulation and includes various categories such as ETH staked on the Beacon chain, ETH deposited with the Beacon contract but not yet used for validation, and rewards received on the Beacon contract.

Source: Nansen

However, it is important to note that the amount of ETH waiting for full exit is about 4.7% of the total ETH on the Beacon chain. This includes rewards, which are equal to 894,671 ETH. In addition, there are 27,809 validators currently awaiting a full exit.

It’s also worth noting that only 86.4% of validators successfully updated their withdrawal address to 0x01. For context, validators must change their address from 0x00 to 0x01 to undo their positions.

While interest in depositing ETH on the beacon chain was high at the time of writing, the trend could change after all full exits are processed and withdrawals could exceed deposits in the coming days.

This could affect the Ethereum network and increase the FUD around the protocol.

What will happen to ETH?

In recent weeks, whale interest in ETH has begun to wane. According to Glassnode’s factsthe total number of addresses holding more than 10 ETH just hit a four-month low of 349,078.

One of the reasons for the declining interest in whales could be ETH’s high MVRV ratio. Elevated MVRV ratios suggest that Ethereum may be in an overbought position due to a large number of profitable addresses that have the incentive to sell.

Realistic or not, here is the market cap of ETH in terms of BTC

The widening gap between long and short term indicated that many short term holders exited and sold their positions. The future of ETH prices would now lie in the behavior of the long-term holders.

Source: Sentiment

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