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ETH investors switch to this strategy as validators suffer $4.7 billion worth of losses.


Holders of Ethereum are anticipating a further price surge as the Ethereum Shanghai upgrade approaches. At the same time, one of the main market worries concerning validators unstacking and selling their ETH might no longer be relevant.

Ethereum price rise might keep investors on hold

As the Shanghai upgrade draws near, the price of ethereum has seen gains worth around 12% over the past two weeks. The market anticipates a two-way price surge for the launch on April 12, although a lower spike looks less plausible.

The worry that unlocking the $32 billion worth of staked ETH would cause selling may go away. This is because the validators who have been depositing their ETH on the Beacon Chain since December 2020 currently anticipate suffering large losses.

More than $4.7 billion in unrealized losses are recorded, a notable decrease from $16 billion in unrealized losses in July 2022.

Even when the price of Ethereum crossed $1,900, validators are still in the red. Moreover, 76% of the losses are borne by the depositor who owns more than 500 validators. This will prevent them from selling until their ETH reaches their break-even price, at the very least. And based on appearances, owners of ETH might adopt the same tactic.

These investors switched from accumulating to selling over 70,000 ETH worth $113 million in the previous two weeks. However, given the ambiguity surrounding the price action, this might not last for the upcoming days.

Aside from that, the cryptocurrency is still outside the danger zone as measured by the Market Value to Realized Value (MVRV) ratio. In the case of Ethereum, this range, which historically has been associated with selling, ranges from 10% to 40%. The MVRV ratio is currently much lower, at 5.8%, which indicates that it will be some time before investors start to take profits.

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