With about 1 month left until the Shanghai update, which will unlock staked Ethereums (ETH) on the network, analysts shared their comments about the price volatility that this situation can create.
Analysts are speculating about the possible impact the upcoming Shanghai update will have on the price and potential sales pressure commented. The general opinion on the subject is that although it is estimated that investors will sell to realize profits, this is Ethereum. will not put a serious pressure on the price was in the direction.
CEO of enterprise crypto data platform Arcana Rich Falk Wallace in the post-shanghai update process, he said recently two different indicators. He stated that it could affect the Ethereum price:
If staking users continue to withdraw their assets and show no interest in verifying the network, it means a bearish trend. If the percentage of ETH staking continues to increase after Shanghai, this is a net positive.
Only 6% of daily trading volume
on the other hand Arcana In the analysis made by Ethereum, a comparison was made between the assets to be unlocked and the daily trading volume of Ethereum. In analysis, at the stage of partial withdrawal $1.2 billion ETH average daily for the first three days after which, in the worst-case scenario, withdrawals are allowed. Only 6% of ETH daily trading volume It was emphasized that as many assets will enter the market.
Head of digital assets at investment firm Recharge Capital John Lo by bringing a different perspective to the subject, to understand how it works He suggested that he would not be in a rush to exit the staking process as they would need time. Stating that it will take time for investors to digest how withdrawals work, Lo said that prevent a sudden wave of sales he added.
60% of users are at a loss
Crypto research firm CryptoQuant has announced that users who lock Ether into the contract 60%where Ethereum is located is at a loss at the current price revealed. Commenting on this data, CryptoQuant analysts say that even if there is selling pressure,modestHe suggested that it will happen in proportions.
Staking on the Ethereum network December 2020started in , and the amount staked since then is approximately $27 billion reached. According to the information presented on Ethereum.org, the amount of ETH staked at the time of writing 17 million displayed as. According to the data, the locked assets on Ethereum are currently approximate total Ethereum supply 13% of forming.