Ethereum Shanghai Upgrade’s Effect on ETH Pledge Withdrawal

03/02/2023 06:51 • Metaverse & Beyond • 66 views

On March 2, the online data platform CryptoQuant released a report saying that after the upgrade of Ethereum Shanghai, the pledge withdrawal of ETH may face lower selling pressure. This conclusion comes from the profit and loss analysis of the pledged ETH. The analysis is based on two reasons: 1. Most of the pledged ETHs (60% or 10.3 million) are currently in a loss state (compare the current ETH price with the price of each ETH pledge); 2. The depositors of the average largest pledge pool are also in a loss state. Generally, when market participants are sitting on huge profits, there will be selling pressure, but this is not the case with the pledged ETH.

Report: 60% of the pledged ETH is currently in loss

Interpretation of the news:

CryptoQuant, an online data platform, recently published a report regarding the upgrade of Ethereum Shanghai and its potential impact on ETH pledge withdrawal. According to their analysis, there could be lower selling pressure on ETH after the upgrade. The report is based on the profit and loss analysis of the pledged ETH.

The analysis indicates that most of the pledged ETH, around 60% or 10.3 million, are currently at loss. This is a significant factor behind the lower selling pressure on the pledged ETH, as depositors are not willing to sell at the current market price, at a loss. The average largest pledge pool depositors are also in a loss state, making them hesitant to withdraw or sell their ETH, which again, results in lower selling pressure.

The report emphasizes that such a situation is an exception in the market, given that when market participants see profits, they usually opt to sell their investments, causing selling pressure on that particular asset. However, the pledged ETH, even though they might not be able to make significant profits at the current market price, are still not under selling pressure.

The Ethereum Shanghai upgrade is expected to improve the network’s overall performance and stability, leading to higher investor confidence in ETH. This could potentially trigger a rise in the market value of the ETH, but even if the market price remains stagnant, the lower selling pressure on the pledged ETH could lead to a balance in the market, preventing a significant drop in ETH’s value.

In conclusion, the report by CryptoQuant is a positive sign for ETH investors, as it indicates a lower selling pressure on the pledged ETH after the upgrade of Ethereum Shanghai. While the analysis does not predict a change in the market’s overall price trend, it shows that depositors of pledged ETH are not under selling pressure despite being at loss. Hence, this report can be interpreted as a hopeful message for the Ethereum community that is eagerly waiting for the network’s update.

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Ethereum Shanghai Upgrade’s Effect on ETH Pledge Withdrawal

Report: 60% of the pledged ETH is currently in loss

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