ETH has gained more than 9% since the Shapella upgrade went live. The share of ETH wagered in profits was over 50% at the time of writing and will undoubtedly continue to increase.

The successful launch of the Shapella Upgrade was an important milestone in Ethereum’s growth trajectory [ETH]. By allowing strikers to withdraw their staked ETH, the development closed the loop on key aspects of the proof-of-stake (PoS) transition that failed to make it to Merge last year.

Read Ethereum’s [ETH] Price Forecast 2023-24

However, unlike the merger, which was followed by a significant price drop, Shapella allayed sell-off fears as ETH has gained more than 9% since the event at the time of writing, according to blockchain analytics firm Kaiko.

The bullish sentiment is strengthening

Since the Shapella upgrade, the ETH derivatives market has become a hive of activity. According to Kaiko, trading in the options market increased with call volumes far outpacing puts. Investors buy calls when they expect an increase in the price of ETH.

Similarly, demand on futures exchanges also picked up as Open Interest (OI) reached a multi-year high of over $6 billion just a day after the upgrade.

Source: Kaiko

In addition, the funding rate, or value needed to hold bullish long or bearish short positions, was positive for ETH on most exchanges, according to data from Coinalyze. This added more power to ETH’s bullish narrative.

Source: Coinalyse

Will selling pressure increase?

Kaiko noted in his analysis that the ETH-USD pair on Coinbase has seen more sell orders than buys, indicating that users have cashed out their exchanged ETH.

In addition, the share of ETH wagered in profits was more than 50% at the time of writing, data from Dune revealed. With a continued rise in the price of ETH, a larger portion of deposited ETH will become profitable, which could lay the groundwork for mass sales.

At the time of writing, ETH’s wagering ratio was 14.5% according to Nansen, compared to 15% at the time of the upgrade. In the past 24 hours, ETH saw a net staking inflow of over 57,000, with over 37,000 ETH being withdrawn.

Source: Dune

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Another dynamic that demanded attention was Ethereum’s correlation to Bitcoin [BTC]which dropped to a three-month low after the upgrade.

For most of the past year, the correlation between the two has been close to 90%. This suggested that ETH was seen as a fundamentally different asset and could be shielded from king coin fluctuations in the future.

This post Ethereum [ETH] rises dramatically since Shapella, but how long will the party last?

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