Investors are speculating whether the ETH price will drop after Ethereum withdrawals are activated, as the Ethereum network will undergo a Shanghai-Capella (Shapella) upgrade tomorrow (April 12).
Some believe that there may be a large number of ETH sales after the Shanghai mainnet upgrade, while others believe that the ETH price will remain stable or exceed $2,000.
According to the announcement of the Ethereum core developer, the Ethereum Shanghai mainnet upgrade is scheduled for April 12 at 22:27:35 UTC time 194048 epoch.
Ethereum (ETH) Selling Pressure After Shanghai Update
According to the Etherscan Beacon deposit contract data, more than 18.14 million ETH worth 34.76 billion US dollars are pledged on the Beacon chain. Of the 18 million ETH, validators and investors will only withdraw a small amount of ETH due to limits, delays in liquidity staking pools, and delays in cryptocurrency exchanges.
According to Nansen data, the average price of staked ETH is $2,135. Additionally, profits from around 4.7 million ETH worth $9 billion are illiquid, making the category most likely to witness sales when withdrawals are enabled after the Shanghai upgrade.
Therefore, ETH worth between $9 billion and $34 billion is at risk of selling pressure, which suggests that ETH price may be under selling pressure.
Additionally, Lido Finance, the largest Ethereum liquidity staking platform, announced that Lido-staked ETH (stETH) withdrawals may be delayed until May. It was revealed that the time it took to conduct the V2 audit caused a delay in preparations for the Ethereum Shanghai Goerly upgrade.
Binance also announced that it will withdraw staked ETH from the cryptocurrency exchange within a week of the Shanghai update.
ETH price rises to $2000
Ethereum (ETH) is nearing $2,000 after renewed positive sentiment in the cryptocurrency market as Bitcoin hit $30,000 10 months later. Ethereum prices are expected to fall after rising in Shanghai as validators may sell their ETH.
ETH price is up 2.23% in the past 24 hours and is trading at $1,906 with a 24-hour high of $1,936. Trading volume over the past 24 hours has also increased by 62.84%, indicating increased interest from traders.
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