CryptoQuant.com2023-03-01

2 Reasons why ETH selling pressure will remain low even after the Shanghai Upgrades

We believe there will be little selling pressure for ETH when staking withdrawals become available after the Shanghai upgrade. This is based on our analysis of the profit and loss of staked ETH. Two factors support the argument: 60% of staked ETH is at a loss, and the largest staking pool's depositors are also at a loss. Around 13% of the total supply of ETH has been staked, meaning it cannot be withdrawn until March 2023, when the Shanghai Fork upgrade takes place. People are concerned that when staked ETH can be withdrawn, it may flood the market and create selling pressure. 1- Currently, 60% of staked ETH is at a loss, representing 10.3 million ETH. 2- The largest staking pool (Lido) holds almost 30% of all staked ETH at an average loss of nearly $1,000. The staked ETH has an average loss of 24%. Typically, selling pressure arises when participants have extreme profits, which is not the case for staked ETH currently. Additionally, the most profitable staked ETH was staked less than a year ago and has not seen significant profit-taking events in the past. For bitcoin, the 7 EMA Exchange Whale Ratio (the ratio of the top 10 inflows to the total inflows of the exchange) reached its highest right before the FTX collapse period. Of course, this does not mean there will be selling in the market, but it shows that the selling pressure derived from the inflow to the exchange has increased significantly.