Why ETH selling pressure is unlikely to increase after Shanghai upgrade: CryptoQuant
Staked Ethereum (ETH) profit and loss show less selling pressure as staked ETH tokens unlock with Shanghai upgrade, cryptoanalysis platform CryptoQuant. SaidThere were concerns that the unlocking of staked ETH would flood the market with these tokens, creating high selling pressure.
However, according to CryptoQuant’s analysis, 60% of staked ETH, or 10.3 million ETH, has suffered a loss. Additionally, depositors of the largest staking pool, Lido, are at a loss. Lido holds almost 30% of staked ETH, with an average loss of around $1,000.
Selling pressure is generally high when investors have the potential for very high returns. Usually when a large number of assets are not staked at the same time, some investors may want to cash in their profits and create selling pressure.
According to CryptoQuant, high selling pressure is not expected as there is no significant profit potential for Ethereum investors.
Low selling pressure also means that the price of Ethereum is unlikely to fall. As selling pressure increases, the price of the token will fall.
Shanghai upgrade
In early January, Ethereum developers agreed that the Shanghai upgrade would take place in March 2023.
The developer considered removing the highest priority staking, excluding a series of Ethereum Improvement Proposals (EIPs) called the EVM Object Format (EOF) in the Shanghai upgrade. However, EOF may be included in one of the future upgrades, but the developers have yet to make a final decision.
Uncertainty about the unlocking period of staked ETH has caused a lot of anxiety among investors who have begun to question the future of the network. is expected.
