After the Ethereum merger, ETH values fell precipitously, leaving addresses holding their ETH at a loss. Ethereum investors are concerned about a potential sell-off in a similar manner due to the Shanghai Upgrade, another important forthcoming event that will take place this month.
The Shanghai upgrade would allow holders to withdraw their staked ETH, which would be one of the reasons for the same. These holders could decide to sell their ETH, which would lower the price of the alternative currency.
Recent data from Crypto Quant, however, suggests that there may not be as much selling pressure on these Ethereum stakeholders as originally thought. Based on the data, it was determined that 10.3 million ETH, or 60% of the ETH invested, was lost.
These holders wouldn’t be as motivated to liquidate their shares.
Although while 60% of the total staked ETH addresses are anticipated to cling onto their coins, the same cannot be stated for the remaining 40% of network holders. The price of ETH may decrease if the remaining lucrative addresses are sold off.
Despite this, traders continued to have faith in Ethereum. Data from glassnode shows that long Ethereum positions on Binance hit a nine-month high. Not just traders, but individual investors also began to build up their Ethereum holdings. Addresses owning more than one Ethereum have grown during the previous month, peaking at 1,741,066 addresses.
Despite the excitement of the traders and investors, several measures pointed to a gloomy future for ETH.
For instance, during the last several days, Ethereum’s network growth has slowed. This suggested that fresh addresses had no desire to purchase ETH. Moreover, its velocity decreased, pointing to a decrease in the frequency of ETH trades.
Along with these elements, the amount of activity on the Ethereum network as a whole decreased. The Ethereum network’s lowering gas use served as a visual representation of this.