According to recent data by CryptoQuant, there may be little to no selling pressure for Ethereum (ETH) after the Shanghai Fork upgrade takes place in March 2023. The fear of a potential flood of ETH into the market and subsequent selling pressure has been a concern for some time. However, the analysis of the profit and loss of staked ETH suggests otherwise.
CryptoQuant’s analysis shows that currently, 60% of staked ETH is at a loss, which represents a total of 10.3 million ETH. Additionally, the largest staking pool, Lido, holds almost 30% of all staked ETH at an average loss of nearly $1,000. The staked ETH, on average, has a 24% loss.
Selling pressure typically arises when participants have extreme profits, which is not the case for staked ETH at present. Furthermore, the most profitable staked ETH was staked less than a year ago and has not experienced significant profit-taking events in the past.
It’s worth noting that these findings are not an indication that there won’t be selling pressure for Ethereum. However, the data suggests that the likelihood of significant selling pressure is low. It is interesting to compare this with Bitcoin, where 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, indicating a significant increase in selling pressure derived from the inflow to the exchange.
The fear of a potential flood of ETH into the market and subsequent selling pressure has been a concern for many traders and investors. However, the data suggests that the staked ETH holders may not be in a position to take significant profits. This could ultimately benefit the Ethereum market, as the absence of significant selling pressure could contribute to a stable price and potentially even a bullish market.
Read more:
- Bitcoin Education Program Sees Exponential Growth In El Salvador
- More Than $60.75 Billion Worth Of Bitcoin Has Been Inactive For Over A Decade