The price of Ethereum\u2019s native token, Ether (ETH<\/a>), shows a growing conflict among traders about the market direction for March. This uncertainty has resulted in ETH price consolidating inside a narrow sideways range between $1,600 and $1,700 since Feb. 15.<\/p>\n The uncertainty stems from Ethereum\u2019s long-awaited Shanghai upgrade<\/a> going live sometime in March. <\/p>\n Several analysts predict the upgrade, which will enable stakers to withdraw their vested tokens from Ethereum\u2019s proof-of-stake (PoS) smart contract, will trigger a short-term sell-off event.\u00a0<\/p>\n The Ethereum PoS smart contract has attracted more than 17.4 million ETH (~$28.35 billion at the current exchange rate) since its introduction in December 2020, per Etherscan<\/a>.<\/p>\n In addition, Ether is finding it difficult to break above the technical resistance range. The Ethereum token has attempted to flip the $1,650\u20131,700 area to support multiple times since August 2022, as shown by the red bar in the chart below.<\/p>\n Interestingly, each failed breakout attempt has resulted in a strong pullback toward a common support line \u2014 a multimonth ascending trendline (black). <\/p>\n Therefore, if history is any indication, ETH\u2019s next correction could potentially land its price near $1,250, down 25% from the current levels. Conversely, a break above $1,650\u20131,700 positions ETH for the $1,925\u20132,000 range (purple) as its next upside target.<\/p>\n From an on-chain perspective, an extended Ether price crash appears less likely.\u00a0<\/p>\n Notably, there\u2019s been a massive drop in ETH supplies on exchanges since September 2022 \u2014 falling from around 30% to 11%. Theoretically, this reduces the immediate sell pressure as capital moves to the sidelines.<\/p>\n \u201cThe trend in crypto, particularly since September, has been quickly moving self-custody,\u201d Santiment noted, adding:<\/p>\n \u201cThis trend picked up after the FTX collapse. Regardless, with both BTC and ETH around 5-year low exchange supplies, future sell-offs will be limited.\u201c<\/p><\/blockquote>\n In addition, data analytics firm CryptoQuant has reached a similar conclusion<\/a> about potential Ether selloffs in the future, primarily in the wake of the Shanghai hard fork. <\/p>\n Related:\u00a03 tips for trading Ethereum this year<\/a><\/em><\/strong><\/p>\n CryptoQuant notes that 60% of the staked ETH supply \u2014 about 10.3 million ETH \u2014 is currently at a loss. Meanwhile, Lido DAO<\/a>, the largest Ethereum staking provider, holds 30% of all staked ETH at an average loss of $1,000, or 24%.<\/p>\n \u201cTypically, selling pressure arises when participants have extreme profits, which is not the case for staked ETH currently,\u201c CryptoQuant wrote:<\/p>\n \u201cAdditionally, the most profitable staked ETH was staked less than a year ago and has not seen significant profit-taking events in the past.\u201c<\/p><\/blockquote>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n25% ETH price correction on the table in March<\/h2>\n
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Future ETH selloffs will be limited \u2014 data trackers<\/h2>\n
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