An important update will take place next month that Ethereum (ETH) investors are eagerly waiting for. This update, named Shanghai, will allow unlocking of ETH staked for the first time. Investors and users are worried about whether the update will affect the price of the leading altcoin, and many think there may be selling pressure.
However, CryptoQuant is of the opinion that this upcoming update may not increase the sales pressure. According to the analytics firm, 60% of all staked Ethereum (ETH) is in loss. The number represents almost 10.3 million ETH.
The firm noted that selling pressure increases when there is “excessive profit.” In other words, when you buy an altcoin but you make a profit, you sell, it would not be a very logical move to sell an asset that is at a loss. Instead, there is a possibility that stakers will continue to stake their ETH.
Additionally, most of the average depositors of staking pools are currently losing money. Almost 30% of all Ethereum (ETH) is staked in Lido, the largest staking pool. CryptoQuant says that Lido is holding its ETH with an average loss of $1,000.
The analytics firm also added that the most profitable Ethereum (ETH) was staked less than a year ago. There hasn’t been a moment of notable profit making since then. Currently, all these factors mean that the update in question could be uneventful for the altcoin price.
You can follow the current price action here.