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Will Shapella Update Affect Ethereum Price? Analysis Sheds Positive Light

Press Releases Crypto News Bitcoinist Will Shapella Update Affect Ethereum Price? Analysis Sheds Positive Light

The upcoming Ethereum upgrade, called Shapella, scheduled for April 12, has raised many questions in the cryptocurrency community about what it might mean for the second-largest cryptocurrency. There have been suggestions that this update which will enable validators to withdraw their staked ethers (ETH), would negatively impact the coin’s price.

CryptoQuant’s ETH Analysis – A Ray Of Hope

According to speculations, if holders decide to sell their cryptocurrency holdings for profit, it could lead to a decrease in market demand and a subsequent drop in the prices of Ethereum.

However, despite this potential outcome, CryptoQuant, a company specializing in data analysis, has allayed fears, saying that the selling pressure may not be significant. The company argues that based on its profit and loss analysis, there is likely to be minimal selling pressure on ETH resulting from staking withdrawals after the upgrade.

The company predicts there won’t be significant selling pressure because most ETH staked (9.4 million ETH, equivalent to 52% of the total) is currently at a loss. On the other hand, the company notes that the average depositor in the largest pools is also experiencing losses.

In this context, it’s unlikely that these market participants would sell their ETH at the current price and make a profit or recover their entire investment. This is because they invested in these activities when the cryptocurrency was trading at a higher value than it is currently. According to CoinMarketCap, the current price of ETH is around $1,800.

Furthermore, the company highlights that staked ETH, which is currently in profit, is generating a yield of up to 30% or less, which they consider relatively low compared to the significant profits that the Ethereum market can sometim

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Author: Olowoporoku Adeniyi

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