Ethereum Selling Pressure Increases, This Is What Will Happen After Shapella Upgrade!

Crypto Ethereum. (Photo; Doc. Unsplash)

JAKARTA - The founder of North Rock Digital, Hal Press, revealed that Ethereum (ETH) sales pressure will not be as big as predicted after the Shapella upgrade. In a tweet on April 12, Press explained that the available data shows that "the actual sales projection is too high and sales will not be as strong as expected."

The Press revealed that only about 4,000 Ethereum validators volunteered to leave the pool validator. Of these, about 1,600 of them are individual stakers who are likely to sell.

"Of these 1,600, I estimate it is conservative that 50 percent will sell and 50 percent will allocate funds elsewhere (liquid staking is not yet available when they start staking). This means that around 800 validators are likely to sell, or about 25,000 ETH. Plus 50-60 thousand ETH on withdrawal, bringing the total to around 85 thousand ETH," said Press quoted from CryptoSlate.

In addition, he also emphasized that if the prediction was threefold wrong, only about 250,000 ETH would be available for sale after the lockdown. According to him, this number is actually "not too significant" if viewed from Ethereum's overall inventory.

Previously, many analysts predicted that the unlock opening of tokens after the Shapella upgrade would increase sales pressure on ETH. However, blockchain analytic firm Glassnode projects that only about 170,000 ETH may be sold after the Shapella upgrade. They are based on their predictions on the number of deposits that want to come out.

Glassnode also stated that the impact of any sale on the price of ETH is expected to be minimal, even in extreme cases where the maximum amount of ETH being staked and the prize is withdrawn and sold.

"Even though sales reach the maximum predicted amount, sales volume is still in the range of daily volume, the average exchange flow. Therefore, we conclude that the impact on ETH prices is still acceptable," said Glassnode.

Meanwhile, Arcana, a market research firm, predicts that in the worst-case scenario, only about 6 percent of the average daily trading volume of ETH will be sold in the first three days after withdrawals become available.

CryptoQuant, a crypto analytics company, also believes that ETH's sales pressure after the Shapella upgrade will tend to be moderate. They show that about 60 percent of all current staked ETHs suffer losses, meaning selling at the moment will not be profitable for stakers.