Is “Shanghai” Selling Pressure on Ethereum? What Analysts Expect? | coindesk JAPAN | Coindesk Japan

How much selling pressure will there be on Ethereum (ETH) with the upcoming Ethereum blockchain “Shanghai” upgrade around 22:27 UTC on April 12? Analysts have different expectations. “Shanghai,” also known as “Shapella,” will allow validators to withdraw their locked ETH and staking rewards.

JPMorgan says it will likely face selling pressure from upgrades as more than 1 million Ethereum will be available immediately.

JP Morgan analysts, led by Nikolaos Panigirtzoglou, see selling pressure in the coming weeks, adding the possibility of additional sales from staked Ethereum balances belonging to “troubled entities.” is expected to be larger. The bank expects Ethereum to underperform Bitcoin (BTC) in the coming weeks.

Bank of America, on the other hand, does not believe the Shanghai liquidity event will drive Ethereum selling pressure directly, but liquidity related to the previous upgrade, “Merge.” We expect volatility around the event to increase due to lower volatility, currency inflows, derivative trading and price manipulation.

Coinbase said the Ethereum sell-off in the context of this event should be relatively limited.

Direct sales related to upgrades are only about 1-2% of the average daily Ethereum trading volume, and Coinbase will probably be near the lower end of that range, he said.

The performance of ETH before and after “Shanghai” may not be driven by technicals, but rather by what the “risks” are at that time. Analysts David Duong and Brian Cubellis say investors may sell ETH to avoid risk if the market decides to sell risky assets. , pointing out that institutional investors may not be so active on the buying side.

At the time of writing, Ethereum was trading around $1,870, down 2.5%.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Here is What Analysts Are Saying About the Ethereum Blockchain’s Shanghai Upgrade