Ethereum (ETH) Worth Billions At Risk Of Selloff After Shanghai (Shapella) Upgrade
With the Ethereum network set will undergo the Shanghai-Capella (Shapella) upgrade tomorrow April 12, investors speculate whether the ETH price to fall after withdrawals of staked Ethereum are enabled. While some consider a massive ETH selloff possibility after the Shanghai mainnet upgrade, others believe ETH price will remain stable and surpass $2000.
The Ethereum Shanghai mainnet upgrade is scheduled at epoch 194048 on April 12 at 10:27:35 PM UTC, as per the announcement by Ethereum core developers.
Ethereum (ETH) Selling Pressure After the Shanghai Upgrade
Over 18.14 million ETH worth $34.76 billion have been staked on the Beacon chain, as per the Etherscan Beacon Deposit Contract data. Out of this 18 million ETH, only some amount of ETH will be withdrawn by validators and investors due to limits, delays by liquid staking pools, and delays by crypto exchanges.
According to Nansen data, the average price of staked ETH is $2,135. Moreover, about 4.7 million ETH worth $9 billion are illiquid in profit, which is arguably the most likely category to witness selling when withdrawals are enabled after the Shanghai upgrade.
Therefore, ETH worth $9 billion out of $34 billion are at risk of a selloff, indicating likely selling pressure on ETH price.
CoinGape Media earlier reported two reasons supporting low selling pressure after the Shanghai upgrade— most participants are at a loss and the largest Ethereum staking pool’s depositors are also at a loss.
In addition, the largest Ethereum liquid staking platform Lido Finance announced that Lido staked ETH (stETH) withdrawals will likely be delayed to May. It revealed that the time spent on undertaking V2 audits has caused delays in readiness for the Ethereum Shanghai Goerli upgrade.
Binance also announced a delay in withdrawals of staked ETH from the crypto exchange for a week after the Shanghai upgrade.
ETH Price Inches Towards $2000
Ethereum (ETH) price is moving closer to $2000 after renewed positive sentiment in the crypto market as Bitcoin price hit $30,000 after 10 months. Ethereum price is expected to fall after the Shanghai upgrade as validators are likely to sell their ETH.
ETH price is trading at $1,921, up 4% in the last 24 hours, with a 24-hour high of $1,936. The trading volume has also jumped 65% in the last 24 hours, indicating a rise in interest among traders.
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