The long-awaited Ethereum Shapella upgrade is scheduled for April 12, 2023 and it is expected to have a great impact on the crypto market. The upgrade combines two of the most proposed Ethereum Improvement Proposals "Shanghai" and "Capella" and it will allow stakers and validators to withdraw assets from the Beacon Chain. Combined with a total supply of roughly 16 million coins, over 9.7 million of which staked Ether currently accounts for, this upgrade means a huge potential for profit and loss.

A profit and loss analysis done by CryptoQuant paints a different picture of what the market was initially expecting. Half of the staked ETH is operating at a loss and significant portion also made by the Lido pool is underwater. This suggests that the expected increased selling pressure will be much lower when holders are reluctant to sell their assets at a loss.

From the technical standpoint, the ETH price has yet to see any improvement unless it surpasses the $1,940 horizontal resistance area. If it does, then there is a chance for local tops at 0.382 and 0.5 Fib retracement resistance levels of $2,440 and $3,400 respectively.

The Shapella Upgrade is undoubtedly an important event but the predicted selling pressure may not be as bad as initially thought. While it is difficult to predict how exactly the market will move, it is likely that ETH holders will be more inclined to wait for a price rebound before deciding to sell.



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