Will Shanghai Upgrade Create Selling Pressure on Ethereum? CryptoQuant Commented!

Second largest cryptocurrency Ethereumeyes in Merge planned to take place in March after the upgrade Shanghai converted to upgrade.

Shanghai upgrade unlocks long-locked Ethereums, ETHSome analysts are expecting some selling pressure in ETH as this will allow the .

But the popular crypto analytics platform CryptoQuant Analysts said that they believe that the withdrawal of Ethereums after the Shanghai upgrade will create little selling pressure for ETH.

Stating that these thoughts are based on their analysis of the Ethereum profit and loss relationship, CryptoQuant analysts stated that they do not expect selling pressure in ETH for two reasons.

According to analysts, these two reasons are; 60% of staked ETHs are at a loss (i.e. Ethereums are straked from high levels) and the largest stake pool depositors are also at a loss.

According to CryptoQuant, selling pressure normally occurs when investors are making excessive profits. But investors are not in profit right now.

In this context, the Shanghai upgrade ETH There is little chance of creating a selling pressure.

“About 13% of the total ETH supply has been staked, which means it cannot be withdrawn until March 2023, when the Shanghai upgrade takes place.

People are worried that when staked ETH can be withdrawn, it could fill the market and create selling pressure.

However, this concern is unfounded for two reasons.

1- Currently, 60% of staked ETH is in loss, which equates to 10.3 million ETH.

2- The largest staking pool (Lido) holds almost 30% of all staked ETH with an average loss of around $1,000. So Lido is at a loss from ETH. ETH staked suffers an average of 24% loss.

Also, typically selling pressure occurs when investors are making excessive profits, which is not the case for currently staked ETH.”