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Ethereum’s Shanghai Upgrade May Result in Lower Selling Pressure for Pledged ETH

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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 lo…

Ethereums Shanghai Upgrade May Result in Lower Selling Pressure for Pledged ETH

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 has recently reported that the upgrade of Ethereum’s Shanghai may lead to lower selling pressure for pledged Ether (ETH). According to their profit and loss analysis, most of the pledged ETHs (60% or 10.3 million) are currently experiencing losses due to the comparison of the current ETH price with the price of each pledge. This suggests that depositors of the largest pledge pool are also in a loss state.

In general, when market participants hold significant profits, they tend to sell, thus creating selling pressure. However, this is not the case for pledged ETH. Since depositors are at a loss, they are less likely to sell and trigger a decline in the market. Moreover, the Shanghai upgrade may further decrease the selling pressure over time. By reducing the fees associated with transactions and increasing the block size limit, the upgrade ensures greater efficiency, security, and scalability. This, in turn, may attract more investors and traders who can leverage the superior functionality of the platform.

Overall, these findings are important for investors and traders who are interested in managing their risk exposure and maximizing their returns. By analyzing the profit and loss of pledged ETH, they can gain valuable insights into the sentiment and behavior of the market participants. They can also use this information to determine the optimal entry and exit points for their positions.

In conclusion, the upgrade of Ethereum’s Shanghai may have a positive impact on the market dynamics of pledged ETH. The fact that most of the depositors are at a loss may reduce the selling pressure and provide stability to the market. Additionally, the upgrade’s features may enhance the platform’s appeal, which may result in increased demand for ETH and other tokens. Ultimately, the future of Ethereum depends on the strength of its community and the adoption of its technology in various industries.

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