Ethereum Shapella Upgrade Closes In; ETH Price Set To Bleed?

Ethereum News: The Ethereum network is set to witness a much anticipated technical upgrade on April 12, 2023. The new development will allow the ETH holders/Users to withdraw their billion worth of Ethereum (ETH) tokens. However, On-Chain data shows that there is a decline in the deposit trend by the staking providers over the past week. It raises a crucial question here how do ETH holders’ action will impact the Ethereum price ahead?

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$34 Billion Worth Of Ethereum Locked In

The cryptocurrency market is in a recovery phase for now. However, it is expected that the traders affected by the recent market downturn might seize the opportunity to withdraw their staked tokens.

IntoTheBlock reported that the Shapella fork will enable Ethereum staked to be withdrawn by validators. This will allow $34 billion worth of locked ETH to enter the market. It mentioned that withdrawals of staked ETH will see a delay to be processed in order to mitigate an exodus and worse security for Ethereum. Read More Ethereum News Here…

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It added that the partial withdrawals will take around 4 to 5 days, while, it is projected to take over 100 days for 1/3 of the full withdrawals to happen. This suggests that around $80 million to $100 million of Ethereum will be withdrawn daily if this happens.

Glassnode reported a decline in deposit trends by staking providers. It mentioned a clear shift in deposits over time with Kraken, Binance, and Coinbase. However, Lido emerged as a winner defeating the three giants. Lido now continues to dominate deposit inflows.

Ethereum price has managed to surge by 33% over the past 30 days. ETH is trading at an average price of $1,857, at the press time. Its 24 hour trading volume is up by 7% to stand at $6 billion.