Ethereum: Shapella Upgrade – A Catalyst for Price Growth?
A profit and loss analysis conducted by CryptoQuant indicates that the upcoming Ethereum Shapella upgrade, set to occur on April 12, 2023, may not result in the expected increase in selling pressure.
The Ethereum Shapella upgrade, scheduled for April 12, 2023, merges elements from two Ethereum Improvement Proposals, “Shanghai” and “Capella.”
This update will enable stakers and validators to withdraw their assets from the Beacon Chain.
This development is significant as staked Ether accounts for roughly one-seventh of the total supply of around 16 million coins.
Over half of the staked ETH is currently operating at a loss, and the Lido pool has a substantial portion of deposits underwater.
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Given this situation, CryptoQuant predicts that the selling pressure may be less than anticipated, assuming that holders may prefer to wait for a price rebound before liquidating their assets.
1 reason why we still think ETH selling pressure will be lower than expected after the Shanghai Update
– Profit and Loss Analysis
🧵👇— CryptoQuant.com (@cryptoquant_com) April 5, 2023
The divergence between exchange and non-exchange addresses may signal a rise in demand for ETH, and the Shapella upgrade is expected to have an impact on the Ethereum ecosystem.
🐳 When splitting the largest #Ethereum addresses into exchange vs. non-exchange addresses, we can see them moving in opposite directions. The 10 largest exchange addresses are near #AllTimeLow levels, while the 10 largest non-exchanges continue ascending. https://t.co/fBBQSErETL pic.twitter.com/Xc0CdNITYF
— Santiment (@santimentfeed) April 6, 2023
Ethereum Price
Ethereum’s price could potentially rise beyond the $1,940 horizontal resistance level, reaching resistance levels of $2,440 and $3,400.
It is more likely that the 0.382 and 0.5 Fib retracement resistance levels will correspond to a local top, especially the former, as it aligns with the previous channel’s resistance line.
At the time of writing, ETH is trading at $1,866 after gaining 2.5% on the weekly chart.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
