Ethereum struggles to keep up with Bitcoin ahead of Shanghai upgrade

Ethereum struggles against Bitcoin
  • The past week has seen a steady influx of ETH tokens being purchased by large wallet investors on the Ethereum network.
  • The total value locked in the Ethereum deposit contract reached a new record high with the Shanghai upgrade less than a month away.
  • Retail investors are once again showing a resurgence in interest in Ethereum, with 23.3 million addresses now holding at least 0.01 ETH.

It is crucial for ETH investors and bulls to protect crucial support at $1,680 to stave off further declines in the price of the altcoin as Ethereum (ETH) Shanghai upgrade approaches. During the past week, Ethereum whales with between 1,000 and 10,000 ETH have been constantly buying up the alternative coin. Retail investors’ interest in the cryptocurrency has increased as ETH holders resist consolidation.

These are some reasons why Ethereum bulls need to protect against a dip below $1,680.
The $1,680 mark on the Ethereum price chart is the peak of a symmetrical triangle that began in September 2021. As a result, $1,680 serves as important support for the altcoin, and bulls must protect against a decline below this level. Ethereum must maintain above its crucial support level to ward off additional decrease in the days before the ETH token unlock event while crypto market participants continue to be uncertain.

Ethereum whales gather ETH in preparation for the Shanghai upgrade.
As the Shanghai upgrade nears, significant wallet holders on the Ethereum network have continued to accumulate the alternative currency. The upgrade attempts to increase Ethereum’s usability and scalability. An important event that the Ethereum holder community has anticipated since the release of the ETH2 deposit contract is the unlocking of the ETH token after the Shanghai upgrade.

The altcoin has continuously been added to the balance of ETH wallet addresses holding between 1 million and 10 million ETH tokens, according to data from Santiment, and between 1,000 and 10,000 ETH. The largest altcoin by market capitalization is gathering massive wallet addresses.

Retail investors share the passion of the whale. According to Glassnode, there are currently over 23.3 million addresses with at least 0.01 ETH, which is an eight-month high.

It’s interesting to note that Total Value Locked (TVL) in the ETH2 deposit contract reached a record high of more than 17 million ETH. For the second-largest cryptocurrency by market capitalization, these indicators support a bullish stance.

Influencers and crypto analysts wonder why the narrative has changed from bullish to bearish in light of the growing unpredictability in the cryptocurrency ecosystem.

Ethereum’s performance lags behind that of Bitcoin.
In 2023, Ethereum, the biggest cryptocurrency in the market, will still find it difficult to match Bitcoin’s performance. Experts on the crypto Twitter platform observed that ETH was more stable before the Shanghai upgrade than it was after the FTX collapse.

Twitter analyst @cryptoalle claims that while Ethereum struggles to stay up with Bitcoin, altcoins are outperforming.