Report: 60% of the pledged ETH is currently in loss

On March 2, the online data platform CryptoQuant released a report saying that after the upgrade of Ethereum Shanghai, the pledge withdrawal of ETH may face lower selling pressure. This conclusion comes from the profit and loss analysis of the pledged ETH. The analysis is based on two reasons: 1. Most of the pledged ETHs (60% or 10.3 million) are currently in a loss state (compare the current ETH price with the price of each ETH pledge); 2. The depositors of the average largest pledge pool are also in a loss state. Generally, when market participants are sitting on huge profits, there will be selling pressure, but this is not the case with the pledged ETH.

Interpretation of this information:

In early March, a report from CryptoQuant, an online data platform, stated that the recent upgrade of Ethereum Shanghai may have a positive impact on the selling pressure of pledged Ether (ETH) withdrawals. This conclusion was made based on an analysis of the profit and loss of pledged ETH.

One of the key reasons for this conclusion is that a significant majority of the pledged ETH (60% or 10.3 million) is currently in a loss state, which means that its current market price is lower than the price at which it was pledged. This could potentially discourage depositors from selling their pledged ETH since they would be realizing a loss on their investment, thereby reducing the amount of selling pressure on the market.

The second reason for this conclusion is that the average largest pledge pool depositor is also in a loss state, which could further discourage selling pressure. This implies that these depositors are not likely to sell their pledged ETH and realize their losses until the market price either rebounds or at least reaches the price at which they pledged their ETH.

Generally, when participants in the market are sitting on significant profits, there is more selling pressure as they look to secure their gains. However, with pledged ETH, this is not the case, given that most of the pledged ETH is currently in a loss state. This suggests that there may be less selling pressure on the market, and potentially even buying pressure as investors look to capitalize on the lower prices and take advantage of the dip.

The implications of this report are important for investors and traders in the cryptocurrency market. It suggests that, in the short term, there may be less downward pressure on Ethereum prices due to pledged ETH withdrawals. Furthermore, it adds to the overall understanding of market dynamics and the ways in which different factors can impact the market, including pledged ETH and upgrades to the Ethereum network.

Overall, the report from CryptoQuant provides valuable insights into the current state of the Ethereum market and suggests that investors may want to take a closer look at potential buying opportunities in the near future.