Ethereum Shanghai Upgrade Could Bring $2.4 Billion Sales! Will The Bulls Hold The Price?

The most important agenda item for the next week EthereumThere will be Shanghai update in . ETH climbed back above $1900 overnight as investors tried to speculate on how the Shanghai upside would put selling pressure on the price.

18 million on the network from December 2020 to date on the road to Ethereum 2.0 Ethereum locked.

With the update expected to take place on April 12, a certain portion of these staked Ethereums will become withdrawable in the first stage.

According to K33 Analysts, ETHs that will become withdrawable in the first stage will create a sales pressure of $ 2.4 billion.

“With partial prize withdrawals, 1.1 million ETH could enter the market. It will be able to withdraw their ETH in projects that are in the process of bankruptcy, such as Celsius. These are likely to sell to pay their customers their money. Celsius, which is in the process of bankruptcy, has 158k Ethereum staked. Considering these, we can see a potential selling pressure of approximately $2.4 billion in ETH.”

It is highly unlikely that all of the 1.1 million ETH that will be instantly withdrawn will be sold at the same time. Some of these investors may hold these ETHs to re-stake, and some to not sell at a loss. Because most of the ETH staked are ETHs bought at prices above the current price level. However, it is possible that companies in the bankruptcy process will sell to save some of their creditors’ funds.

Here it can come by Kraken in a print alongside Celsius. As you know, Kraken stopped staking services after the decision from the SEC. 1.2 million ETH staked through Kraken will also be withdrawn and returned to beneficiaries. In this case, it is considered that it may increase the sales pressure.

“Kraken will withdraw all ETH staked by US investors as a result of regulatory pressure. This may lead some investors using Kraken’s staking service to sell.”

This selling pressure is expected to spread over several days rather than a single day. According to 21Shares, partial withdrawals take 5-6 days to complete, while all withdrawals take three weeks to 4 months to complete.

While the spread of the selling pressure over a few days strengthens the expectations that this will be balanced with the buyers, it will be of great importance whether the risk appetite in the market is high or low on the day the locks are opened.

According to K33’s report, 46% of staked ETHs are in profit, while 54% are in loss.

The biggest investors staking ETH are as follows: