Ethereum price looks passive below $1,900 as Shanghai update round the corner, On-chain data indicates further selling could be not be that significant
Ethereum (ETH) price lagged behind Bitcoin (BTC) in the beginning of 2023 by 14%. However, Ether is now racing ahead of the Ethereum blockchain planned Shanghai upgrade.
Ethereum’s backward-incompatible Shapella hard fork slated to happen on April 12. Investors became anxious of the impending unlocking of ETH deposited in the network to boost security in return for rewards will see few of holders rush to exchanges to liquidate their tokens, and its effect on the Ethereum price.
The second largest cryptocurrency by market capitalization defies rumors and regulatory action against exchanges to hit a seven-month high of $1,922 on April 5.
According to On-chain analytic firm Cryptoquant the analysis indicates the Etherum price might not see a heavy sell-off in the coming week.
As per the data analysis platform, the bullish buying activity may prove on-chain data correct that Ethereum selling pressure after the Shanghai hardfork will not be that significant.
A bullish sign is the rise in proof-of-stake validation by placing Ether in staking contracts. The Ethereum network has witnessed over 18 million ETH staked on the blockchain since August 4, 2021.
As per the data, 52% of the total ETH staked is currently at loss, which is 9.4 million ETH out of total 17.9 million staked ETH. Most of these ETH at loss were staked between March 21 and June 2022. Further, the average depositor of the largest staking pools is also at a loss.
With all the above readings it could be concluded that the selling pressure could be averaged in the short-term.
