Is ETH Bullish ahead of the Shapella upgrade?

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ETH price briefly reclaimed $1,900 for the first time since August 2022. On-chain data reveals how whale investors have been rushing to stack up Ethereum ahead of the Shappela network upgrade. Up next $2,000 ETH? 

The global Ethereum community is anticipating the Shappela upgrade scheduled for April 12. Large investors appear to exploit the negative social sentiment to accumulate ETH and front-run a potential price upswing.

Social Sentiment Remains Negative Despite Ethereum Price Surge.

Despite reclaiming an 8-month high, the social sentiment surrounding Ethereum has remained largely negative. Bearish speculators expect the ETH price to crash when 13 million ETH are unstaked after the ETH2.0 transition is completed on April 12. 

According to data from the blockchain data platform Santiment, Ethereum Net Weighted Sentiment has remained negative since February. Since reaching 7.21 on February 12, ETH weighted sentiment has declined to -0.19 as of April 7. 

Ethereum (ETH) Price vs. Weighted Sentiment, April 2023. Source: Santiment

Weighted Sentiment compares the ratio of negative to positive mentions of an asset across relevant social media. When it persistently trends below zero, as observed above, investors could interpret it as perfect timing to buy the dip. 

The accumulation trend among Ethereum whale investors further confirms the bullish proposition. 

The Santiment chart below shows how crypto whales holding 1 million to 100 million coins started buying when Weighted Sentiment began trending negative. Between Feb. 12 and April 7, the whales added 2.4 million ETH worth approximately $4.4 billion to their balances. 

Ethereum (ETH) Price vs. Whales Accumulation April 2023. Source: Santiment
Ethereum (ETH) Price vs. Whales Accumulation April 2023. Source: Santiment

When the whales keep accumulating coins for such an extended period, it is only a matter of time before the shark and other retail investors also become bullish. If the whale accumulation continues, it could lead to an Ethereum price rally when the current Fear, Uncertainty, and Doubt (FUD) clears. 

Likewise, the whale accumulation could inspire many ETH2.0 stakers to hold their positions for more gains rather than sell immediately after withdrawal.   

ETH Price Prediction: Up Next $2,000

IntoTheBlock’s Global In/Out of Money chart suggests that Ethereum price could soon break above $2,000. As shown below, ETH faces a minimal challenge of 1.16 million addresses holding 1.3 million ETH en route $2,030. If ETH can move past that resistance, it could extend the price gains to $2,500. However, the 8 million addresses that had purchased 26 million coins around this price could enter a sell-off frenzy and knock back the Ethereum price. 

Ethereum (ETH) Global In/Out of Money chart, April 2023. Source: IntoTheBlock
Ethereum (ETH) Global In/Out of Money chart, April 2023. Source: IntoTheBlock

Still, the bears can have their way if the ETH price slips below $1,780.  But this is unlikely, as 4.17 million addresses who bought 9.16 million coins around that price could offer considerable support. But if that support line is breached, the ETH price may sink as low as $1,630.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

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