• CryptoQuant data revealed that 60% of staked Ethereum (ETH) is running at a loss after the Shanghai Upgrade.
• ConsenSys notified ETH holders of imminent staked ETH withdrawals following the upgrade.
• The Shanghai Upgrade was meant to enhance blockchain deliveries for the Ethereum network, although it was surrounded by controversies.

Shanghai Upgrade Affects Staked Ethereum

CryptoQuant data shows that 60% of the total staked ethereum (ETH) is currently running at a loss following the Shanghai upgrade, the network’s first major hard fork upgrade since The Merge. This has caused an increase in selling pressure as investors look to cash out after two years of having inaccessible funds.

Staking Pools and Losses

According to CryptoQuant, 13% of the total ETH supply is staked, and most belong to large staking pools. Out of this 13%, 60% is presently running at a loss, causing significant losses for Ethereum validators and making it uneconomical to cash out.

ConsenSys Notifies Holders

ConsenSys, an Ethereum software company, recently updated ETH holders on stakes withdrawals via Twitter. They notified that after the hard fork upgrade, full and partial withdrawals would be supported by the network.

The Aim Of The Upgrade

The aim of this upgrade was to enhance blockchain deliveries for the Ethereum network, however it was surrounded by controversies prior to its launch on September 6th 2020 when Ether transitioned from proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS).


Despite low selling pressure due to locked liquidity pools before the upgrade allowing investors unable to withdraw their ETH over two years, now with full or partial withdrawal support enabled after this hard fork update will lead to increased selling pressure and a subsequent crash in ETH prices if not managed properly moving forward.