Ethereum Shapella: 170,000 ETH will be sold, according to Glassnode

Shapella (Shanghai+Capella) on Ethereum should be activated in less than 24 hours. The analysts are divided concerning the reaction from market following the deployment of the update.

The update Shapella on the Ethereum blockchain is expected in the night of Thursdayaround 00h30and will allow investors who have placed staking ethers to withdraw them. Deposits have been made since November 2020 – before the launch of the Beacon Chain – and validators have not had access to their digital coins, or accumulated rewards, until now.

There are now some 18 million ethers in stakingwith a value of approximately 33 billion dollars and representing nearly 15% of the total outstanding supply of the cryptocurrency.

Given that the price ofETH has fluctuated widely since the fall of 2020, exceeding $4500 at the end of 2021 and finally falling below $1000 last summer, and that ETH have been stalled throughout this period, it is currently difficult to know to what extent validators will withdraw and sell their tokens.

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For Glassnode, 170,000 ETH are intended to be sold as a result of the upgrade (100,000 ETH of the total accumulated rewards). The impact on the price should be acceptable,” according to a report from the Swiss blockchain research startup.

The analytics platform CryptoQuant has indicated that 60% of the supply of staked ethers, or about 10 million tokens, was today in loss “.

The largest staking pool (Lido) holds nearly 30% of all staked ETH with an average loss of nearly $1,000. The staked ETH has an average loss of 24%.” she wrote.

Another blockchain specialist, Coin Metrics, estimates that within five days of Shapellathe validators will remove 1.2 million ETH but that the majority will later be put back into staking.

At JPMorgan, the bank’s analysts said Ethereum will be subject to a some selling pressure “. If you add potential additional selling pressure from stalled ETH balances owned by distressed entities, then selling pressure could be more significant over the next few weeks,” they said, noting that they expect Bitcoin to outperform Ethereum.

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Analysts at Fidelity Digital Assets, the crypto arm of the U.S. giant Fidelityare less pessimistic and predict that the impact on the price of ether should not be too great because the providers of staking services will impose probably “of the unlocking delays and that one third of the staked ETH is already liquid.

Generally speaking, strong selling pressure occurs when investors have made significant profits, which is not really the case today for all validators on the Ethereum network, thus logically suggesting a limited selling pressure.

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