Whales selling altcoins as Ethereum Shanghai upgrade nears

April 12, 2023 at 12:48 pm

Markets

Whales selling altcoins as Ethereum Shanghai upgrade nears

Whales are selling altcoins as fear-mongering continues in the Ethereum (ETH) community, with many expecting a possible market crash.

As the Ethereum Shanghai upgrade draws near, the community and major stakeholders in the crypto landscape are acting in preparation. Lookonchain recently highlighted the actions of Blockchain Capital, a major crypto whale.

Blockchain Capital disposed of a large sum of LSD tokens. For instance, the Lookonchain tweet indicated that Blockchain capital sold 65,352 RPL worth ($2.9M) and 1.5M LDO tokens worth $2.52M. Furthermore, the report indicates that the network now holds just about no LDO and 107,085 RPL ($4.52M).

1/ 17-hour countdown until #Ethereum #Shanghai!

Blockchain Capital sold #LSD tokens today:
1.5M $LDO($2.52M)
65,352 $RPL($2.9M)

And currently holds no $LDO and 107,085 $RPL($4.52M). pic.twitter.com/hg17d0VJEG
— Lookonchain (@lookonchain) April 12, 2023

Interestingly, the reports indicate that Blockchain Capital made a profit of $1.05 million from selling the LDO tokens and $1.09 million from RPL.

Blockchain capital is among the many people preparing for the incoming Shangai Upgrade. Major whales are preparing for impending volatilities associated with Ethereum and altcoins, hence the portfolio realignments.

Some major whales have also been deleveraging their market positions to reduce exposure. Many have no clue of what is to come from the upcoming update.

The current reaction where whales are selling is, therefore, not at all surprising. On March 3, when Ethereum developers announced the final date of the Ethereum Shanghai upgrade, there was a massive market dump.

Investors approaching the upgrade with fear

Two big things happening today;

– Shanghai upgrade -> Fear comparable to Mt. Gox unlock -> selloff in #altcoins due to expectations that markets are crashing.

– CPI -> Usually market mover, if comes in lower than expected -> positive results for the markets.
— Michaël van de Poppe (@CryptoMichNL) April 12, 2023

Many investors are approaching the impending Shanghai Upgrade with some trepidation akin to Mt. Gox unlock. As such, significant altcoins have a colossal selloff, with many expecting a steep market crash.

Crypto Crib, a crypto enthusiast, noted that the impending Shanghai Upgrade is the last hope for bears.

There is a general feeling that a possible mass sale of ETH may occur due to the unlocking, meaning more of the coins on the markets.

Another analyst, @oesnetwork, holds an entirely different view. The analyst tweeted that;

“$ETH may outperform $BTC post-#Shanghai hard fork. Market treating this upgrade as a bad news event, with traders hedging pre-news & likely buying back after. In short, it is the inverse of the ETH 2.0 fork last September. Check out the chart for more details.”