With the Ethereum Shanghai update, ETH withdrawals, which had been locked for about 2 years, started again, and the impact of billions of dollars on the market scared investors.
The market moved against expectations again and there was no fear. Coinbase reported in February 2023 that “if risk appetite is high during the period of unlocking, the market may face demand far beyond balancing unlocked Ethereums.” he said.
It also happened, as Coinbase’s report says. With the start of ETH withdrawals, ETH rose above $2000. Within a week, we see that ETH maintains this strength and is traded at $2100 as of our news time.
Demand Outpaces Filming
According to the latest data, the number of withdrawals has decreased considerably and the number of Ether staked has exceeded the number of Ether withdrawn.
According to data provided by Nansen, 94968 ETH has been staked and 27076 Ether has been withdrawn in the last 24 hours. This means that the net input is 67892.
When we look at the graph regarding the withdrawals, we see that the pressure of the unstacked ETHs on the price has decreased considerably.
The number of ETH waiting to be withdrawn has also decreased to 5% of the total locked value.
While the average price of ETH staked before Shanghai was around $3500, post-Shanghai this price dropped to $2137.
Is This More Bullish Signals For Ethereum?
Grayscale analysts Matt Maximo and Michael Zhao said that the outflows in Ethereum were less than expected and demand for ETH could increase as the risk of staking is reduced.
Stating that every ETH withdrawn does not mean that it will be sold, analysts said:
“The impact of the Shanghai upgrade on the price is related to the withdrawal of less ETH than expected. Initially, it was expected that there could be more withdrawals. As we look to the future, the demand for an ETH with reduced stakes may increase. This means an increase for Ethereum.”