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The Ethereum community has been waiting with bated breath for the Shanghai hard fork that will occur on the network. The aforementioned improvement is scheduled to take place over the course of the next few months, and its goal is to make it possible to withdraw staked coins. The Ethereum Zhejiang testnet completed the processing of its first ETH withdrawal just the last week, bringing the network one step closer to the official upgrade. However, this raises the fear of a mass dump impacting the price of Ethereum (ETH), which many industry experts anticipate will occur following the opening of the withdrawal option.
Ethereum (ETH) Price To Dump?
Prominent crypto influencer Lark Davis has issued a video warning to users, in which he explains that beginning in March 2023, 16 million Ethereum tokens with a total value of more than $26 billion will be able to be withdrawn. He claims this can lead to a significant sell-off in the crypto market and further disrupt the bullish narrative that ETH is currently witnessing.
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Having said that, he goes on to say that not all of the coins will be accessible all at once. And, in a similar vein, while many people are anticipated to reap gains from selling their Ethereum, Davis predicts that not all holders of ETH will likely sell or dump their holdings. Moreover, he states that the price of ETH was $600 at the time that the stake was placed.
A Good Buying Opportunity?
According to Davis, investors and traders in cryptocurrencies will have an excellent opportunity to make purchases if they take advantage of a market that develops as a result of holders opting to sell their coins when the unlocking feature is activated rather than continuing to stake them.
Given the daily constraints, however, it would take almost a whole year for all of the Ethereum validators to leave the network even if they wanted to. In addition, Davis makes the announcement that, as a part of the staking reward, more than one million coins will be unlocked in three weeks after the unlocking process has begun.
Ethereum staking is “the act of investing 32 ETH to activate validator software,” according to the definition that can be found on the website of the Ethereum Foundation. Nonetheless, there is a workaround to the 32 ETH threshold imposed by the foundation as Ethereum holders can participate and collect rewards without meeting the minimum requirement if they use cryptocurrency exchanges like Coinbase or specialized liquid staking platforms like Lido and RocketPool.
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