With the recent price action, Ethereum Shanghai seems to be less effective for the ETH price volatility
Ethereum (ETH) price has struggled near $1,550 for the past few sessions. Ethereum Shanghai upgrade, which allows for staked ether withdrawals locked previously. However, market analyst predicts that the upgrade won’t significantly affect ETH’s price.
Investors are placing bets ahead of Ethereum’s Shanghai upgrade slated to happen in April. As of press time, ETH/USD is reading at $1,568, up 0.27% for the day. All of the focus remains on withdrawing staked Ethereum. Staking launched back in December 2020, the Ethereum network started its journey to a proof-of-stake consensus algorithm, those who locked up their funds haven’t been able to withdraw those funds.
The concerns are that the ability to withdraw funds could lead to an oversupply of $ETH on the market, especially since their nearly $29 billion worth of $ETH is staked on the Ethereum network. As per Cryptoquant, there could be low-selling pressure for ETH from staking withdrawals post-Shanghai upgrade.
As of press time, 17.3 million ETH, or nearly 13% of the total supply have been staked. But the analytical firm predicts there would be low selling pressure for ETH from staking withdrawals as the majority of the ETH staked (60% or 1.03 million) is currently in the loss.
As most of the ETH staked that is in profit was staked less than a year ago.
Technically speaking, ETH has been struggling near the 200-day Exponential Moving Average (EMA). We expect a short term price range of $1,500-$1,700 in the short term.
