The current state of the cryptocurrency market is predominantly positive, with many assets experiencing noteworthy gains throughout the week. Ethereum (ETH) saw a significant rise in value thanks to the Shapella development. There were concerns that ETH’s staking protocol could lead to a surge in withdrawals and a drop in value. But, contrary to those expectations, ETH’s value increased and surpassed the $2,000 mark.
Moreover, the selling pressure seems to be low. This is due to the fact that the Shapella upgrade will not cause a sell-off due to the current state of staked ETH holdings.
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60% of all staked Ethereum held at loss
According to the latest research report from April 2023, 60% of all staked ETH is held at a loss. These also include the holdings at Lido DAO.
The possibility of a sell-off is nullified, as approximately 30% of staked ETH is at an average loss of over $1,000. Due to the absence of large gains, the possibility of sell-offs is meager. This is evident from the recent surge after the Shapella upgrade. ETH has risen by over 14% since the upgrade and is trading at $2,103 at press time. With the possibility of a sell-off not occurring soon, there is a likelihood for the price to surge.