CHAPELLA UPGRADE INCREASED CONFIDENCE IN ETHEREUM

If you do not know already, it is now possible to unstake your ETH coins. This is is because of the Chappella upgrade that was completed last week, it happens to be the same day that the March CPI data came out. The surprising thing is that the ETH price did not react to the CPI data. I think it is due to the fact that the Chappella was completely late at night and also the crypto is not as correlated to the stock market as it use to be. In another word, it is less affected by the macroeconomic news. Long story short, ETH rallied massively within 24 hours and this is even weirder because by that time, around 2 billion staked ETH, and the staking results were waiting patiently to be claimed.

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The ETH unstaking track suggests ETH stakers are only unstaking their staking reward and they may even be staking the staking rewards. There has not been much selling pressure stakers and traders as a lot of people had anticipated. Not only that, the Ethereum latest upgrade had increased confidence in Ethereum from both retail investors and institutional investors also. This factor may likely be the reason why we see the current rally. ETH faces a similar hurdle as BTC in the short or medium term based on the Bolliger Band indicator and we do not know sure if it can't get the key price point of $2,400.

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This will have to do with what occurs when centralized exchanges and staking protocols begin allowing their users to withdraw their staked ETH and their ETH reward. I think a lot of people staking their ETH with the centralized exchange are not as hardcore as Ethereum validators. In other words, the ETH staked on centralized exchanges is more prone to selling and of course, Kraken alone is expected to unstake over one billion worth of ETH because it has been facing some regulatory scrutiny. The interesting thing is that only a small amount can be unstaked each Epoch which of course will decrease the selling pressure by the stakers. Coinbase exchange and LIDO finance announced that it will take some weeks to process all staked withdrawals on their platform.