CryptoQuant, an on-chain analytics platform, is certain that Ethereum (ETH) won’t face the heavy selling pressure that was expected after Shanghai’s planned upgrade next week.
The Shanghai upgrade, which will enable unstaking of Ethereum on April 12th, is not predicted by CryptoQuant to cause abnormally high selling pressure.
Since majority of the staked Ethereum is trading at a discount to its purchase price, CryptoQuant predicts that selling pressure will be milder than initially anticipated.
Concerns that the Shanghai upgrade on April 12 may trigger withdrawals and lead to higher than normal selling pressure have persisted for some time.
Our financial projections, however, suggest otherwise.
More than half of the staked ETH (9.7 million out of 17.9 million) is now in the red due to the current price of ETH.
We foresee less selling pressure than usual because a lot of the ETH that has been staked is presently losing money.
According to CryptoQuant, a lot of the Ether staked with Lido, a liquid staking service, is also losing money.
“It’s also worth noting that a lot of the Lido pool’s deposits are currently submerged,”
Over 16.5 million Ethereum have been staked, or about 14% of the entire supply, according to Binance Research.
At the time of writing, one Ether can be purchased for $1,867.