Hello everyone. Yesterday I found out about this news. According to CryptoQuant most of the staked ETH is at a loss and the rest at low profit, so it would not be sold and would affect the price.
Ethereum's highly anticipated Shapella upgrade, a hard fork scheduled for April 12, 2023, brings with it significant implications for the crypto market. It will allow validators to withdraw the ethers (ETH) they deposited in staking. This suggests that if they sell their holdings in this cryptocurrency to take profits, they would generate selling pressure in the market and, consequently, a fall in price.
With the amount of Ethereum locked up, accounting for about a seventh of the total supply of around 16 million ETH, this development carries immense weight. The current value of all the locked ETH is over $26 billion. En la actualidad, más de la mitad del Ethereum bloqueado (9,7 millones de ETH de un toral de 17,9 millones de ETH) está operando con pérdidas.
This context means that if these market participants were to sell their ETH at the current price, they would not make a profit or recover their entire investment. This is so because they invested in these activities when the cryptocurrency was trading higher than it is now. Its current price is around USD 1,800, according to CoinMarketCap.
Given the substantial amount of ETH locked up that is posting losses, CryptoQuant anticipates that the selling pressure will be less than expected. This projection is based on the assumption that holders may hesitate to sell at a loss.
Given this scenario, CryptoQuant highlights that "selling pressure arises when market participants make extreme profits, which is not the case at the moment for ETH that is staked." Therefore, under this idea, it could be deduced that there will not be a price drop.
According to the view of other market analysts reported by CriptoNoticias, such as Miles Deutscher, the price of ETH is struggling to exceed USD 1,900. It already surpassed this level for a moment this week, without being able to establish itself there.
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