• Staked Ethereum Unrealized Losses stands at $4.7B ahead of Shapella upgrade
• Glassnode observed that the largest depositors are experiencing the highest degree of financial pain, as this cohort held 70% of the unrealized losses
• Major events such as The Merge, Shanghai upgrade, etc., witnessed a surge in one-time depositors

Overview

The selling pressure post hard fork should be lower than expected. With the much-awaited Shapella (Shanghai) upgrade just hours away, the value of staked Ethereum with unrealized losses has decreased significantly. But it is the largest stakers who have suffered the greatest losses.

Unrealized Losses on Ethereum Beacon Chain

According to Glassnode, the net unrealized loss on the Ethereum Beacon Chain now stands at $4.7 billion, after falling by 71% from its peak of $16 billion following collapse of Terra Luna ecosystem tokens. During this period ETH tanked to and even below $1,000; however price has since recovered and is now inching closer to $2,000. The blockchain analytic firm also observed that largest depositors are experiencing highest degree of financial pain as cohort held 70% of unrealized losses. Typically long term ETH investors tend to remain unfazed by unrealized losses and further on-chain data shows flurry of recurring depositors on daily basis. However major events such as The Merge, Shanghai Upgrade etc witnessed a surge in one time depositors.

Sell Off

It is anticipated that selling pressure post hard fork should be lower than expected due to significant decrease in value of staked ETH with unrealized losses prior to Shapella (Shanghai) Upgrade commencement. However it is still unclear whether major stakeholders will decide to sell off their holdings or they will continue with their positions despite suffering large financial drops in value due to market movements during preceding weeks prior to hard fork event taking place today at 13:00 UTC.

Insights

On-chain insights show that majority stake holders have opted for longer holding periods rather than liquidating their holdings despite suffering from high degree of financial pain due to market movements during preceding weeks before hard fork event took place today at 13:00 UTC . The number of one time depositors increased significantly during major events such as Beacon Chain genesis , The Merge and upcoming Shanghai upgrade which further highlights investor confidence in Ethereum network despite suffering from considerable slump during previous weeks .

Conclusion

To conclude , despite significant drop in value for staked ETH with unrealised losses prior to Shapella (Shanghai) Upgrade commencement , it appears that most investors decided not to liquidate their holdings but rather stay put and wait out any potential gain once new protocol gets activated today at 13:00 UTC . On-chain metrics further reflect investor confidence towards Ethereum network regardless recent market dips experienced by crypto assets over past couple days .