Cryptocurrency

Crypto hedge founder says sell pressure projections on Ethereum are too high

Hal Press, founder of North Rock Digital, said after Shapella’s upgrade, selling pressure on Ethereum (ETH) will not be as high as many predicted.

on April 12th Tweet, The press explained that the available data suggests that “most sales projections are too high and sales are not as strong as expected.”

According to Press, only 4,000 Ethereum validators have voluntarily emerged from the validator pool. Of this number, 1600 are individual stakers, most likely to sell.

Press said:

“Of this 1600, we conservatively estimate that 50% will be sold and 50% will be reallocated elsewhere (liquid staking did not exist when they started staking. ).This will increase the chances of 800 validators being sold for 25,000 ETH.If we add another 50-60,000 to the withdrawal, we will have a total of 85,000 ETH.”

Press pointed out that even if his prediction was one-third, only 250,000 ETH would be available for sale after unlocking. According to him, this number is “fairly insignificant” given overall supply.

Some analysts had predicted that the token unlocking could increase ETH selling pressure as the Chapela upgrade is scheduled for later today.

Analytics firm predicts lower sales pressure

blockchain analytics company glass node projected 170,000 ETH could be sold after the Shanghai upgrade. On-chain data aggregators made predictions based on the number of depositors considering withdrawal.

According to the company, the impact of the sale on the ETH price will be minimal. This is even in extreme cases where the maximum amount of ETH and rewards wagered is withdrawn and sold.

“Sell-side volumes remain well within the average weekly exchange inflows. We therefore conclude that even the most extreme cases would have an acceptable impact on the price of ETH.”

in the meantime, Arcana Predict In the worst case scenario, only 6% of ETH’s average daily trading volume is sold in the first three days after withdrawals are available.

CryptoQuant We also believe that selling pressure will be modest. He points out that 60% of staked ETH is a loss, making it unprofitable to sell at this time.

The post Crypto Hedging Founder Says Ethereum Selling Pressure Forecast Too High first appeared on CryptoSlate.

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