Hal Press, founder of North Rock Digital, said that after the Shapella upgrade, selling pressure on Ethereum (ETH) will not be as high as many expected.
On April 12th tweetAnd Press explained that the available data indicated that “most of the selling expectations were very high and the selling will not be as strong as expected.”
According to the press, only 4,000 Ethereum validators voluntarily left the pool of validators. Of that number, 1,600 are individual stockholders and are likely to sell.
The press said:
“Of that 1,600, I conservatively estimate that 50% will sell and 50% will reallocate elsewhere (the liquid stack wasn’t there when they started staking). That leaves 800 validators likely to be for sale, which is 25,000 ETH. Plus 50-60k another on withdrawals, which is roughly 85k in total ETH.”
Press noted that even if his prediction is three times lower, only 250,000 ETH will be available for sale after the unlock. According to him, this number is “extremely insignificant” given the overall supply.
With the Shappella upgrade scheduled for later today, many analysts have speculated that unlocking the token could add to the selling pressure on ETH.
Analytical firms expect less selling pressure
Blockchain Analytics Company glass It is expected that 170,000 ETH will be sold after the Shanghai Upgrade. The on-chain aggregator based its prediction on the number of depositors looking to get out.
According to the company, the impact of any sale on the price of ETH will be minimal — and this is even in the extreme case where the maximum amount of ETH and rewards are withdrawn and sold.
“The volume of the sell side is still within the range of the average weekly exchange flow volume. Therefore, we conclude that even the most extreme case will have an acceptable impact on the price of ETH.”
while, Arcana He predicts that in a worst-case scenario, only 6% of the average daily trading volume of ETH will be for sale in the first three days after withdrawal becomes available.
CryptoQuant He also believes that selling pressure will be modest. He noted that 60% of all profitable ETH is a loss, which means that selling at the moment will be unprofitable.
Hedge After Crypto Founder Says Ethereum Selling Pressure Expectations Are Very High appeared first on CryptoSlate.