Ethereum underwent a significant upgrade called Shanghai in April. It was supposed to make the network faster and more eco-friendly. But, a new report from JP Morgan says it hasn’t made as significant an impact as expected. This has led to talks about why Ethereum isn’t performing as well as hoped after the Shanghai upgrade, even though it was a massive milestone for the platform. The switch from proof-of-work to proof-of-stake called the Merge, was supposed to help Ethereum grow and reach an ATH.
The research Report said, “While the shift from proof-of-work (PoW) to proof-of-stake (PoS) that resulted from the Merge upgrade meant that the energy consumption for the Ethereum network collapsed by more than 99%, the ether supply is shrinking and staking rose sharply, the increase in network activity has been rather disappointing.”
The analysis found that Ethereum’s recent Shanghai upgrade didn’t have the expected impact. Daily transactions on Ethereum fell by about 12%, daily active users dropped by nearly 20%, and the total value locked in DeFi decreased by almost 8%. These numbers suggest the upgrade didn’t boost Ethereum’s performance as anticipated.
The staking increased by 50% after the Shanghai upgrade, making the network more secure.
However, the report added, “The share of liquid staking protocols such as Lido remains uncomfortably high, raising questions about centralization.”
The experts suggest Ethereum’s not doing great because of a mix of bad stuff in the crypto world lately. Things like FTX and Terra falling apart, unclear rules in the U.S. about crypto, and big investors losing interest, among other reasons.
But there’s hope because Ethereum plans another upgrade called EIP-4844 later this year to fix these issues and make things better. Still, the report warns that the cryptocurrency market is tough right now. Ethereum’s goal was to be greener and more efficient, but it didn’t grow as much as hoped after the upgrade.
In the midst of a recent Bitcoin price correction from its peak of over $29.1k to around $26k over the past three weeks, on-chain data is indicating heightened interest from well-funded investors in the leading digital asset.
While some investors are awaiting a potential drop toward the $24.5k mark, identified as a crucial psychological support level, others are closely observing the sustained bearish sentiment within the crypto market. Notably, trading volume for Bitcoin on exchanges has reached a nearly five-year low, as indicated by an on-chain analysis conducted by CryptoQuant.
On-Chain Insights into Bybit Bitcoin Rebalance
Bybit, a prominent cryptocurrency exchange based in Dubai, has recently experienced significant outflows of Bitcoin. Aggregate on-chain data from Coinglass reveals a withdrawal of more than 31.9k Bitcoins from Bybit within the past week alone.
Crypto data analyst James V. Straten from London suggested that over 12.5k Bitcoin withdrawals were instigated by crypto whales. However, Bybit’s CEO, Ben Zhou, countered this claim, clarifying that the exchange had proactively communicated to users about a planned movement of coins to cold storage, adhering to standard security protocols.
Potential Impact on Market Speculation
The substantial outflow of Bitcoin from a single exchange, attributed to a whale, has the potential to trigger significant speculation and induce price volatility, which has been relatively subdued in recent days.
As the cryptocurrency market navigates through a period of price correction and bearish outlook, attention is drawn to the activities of deep-pocketed investors and their influence on market dynamics. The situation with Bybit’s Bitcoin outflows exemplifies the intricate relationship between on-chain data, investor behavior, and market speculation, emphasizing the need for vigilant analysis during times of market turbulence.
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Binance’s BNB Smart Chain (BSC) is scheduled to undergo two hard forks in August 2023. The aim is to improve security and compatibility with other EVM blockchain networks, thereby enhancing its position in the DeFi ecosystem. The upgrades will minimize the risk of malicious blockchain reorganization and increase BSC’s compatibility with other EVM networks. Binance assures users that these upgrades will be seamless and will not disrupt existing applications on BSC. BSC has gained popularity in the decentralized finance (DeFi) space due to its faster transaction speeds and lower fees compared to the Ethereum network.
Binance announces an upcoming wallet infrastructure upgrade involving the retirement of selected deposit addresses and memos. The upgrade aims to enhance efficiency and fund security. As a result, Binance users will need to create new wallet addresses in the coming months.
The transition process will occur in stages, encompassing different cryptocurrency networks such as Bitcoin, Ripple, Solana, Litecoin, Polkadot, Avalanche, Cardano, and more. Users transacting in these cryptocurrencies will receive individual email notifications and will be required to generate new addresses and memos, if applicable.
The migration is scheduled for the third quarter of 2023, although users are advised to continue using their current deposit addresses until they receive an official notification from Binance to switch to new addresses and memos.
Binance assures users that funds deposited at expired addresses will not be lost. Instead, users can manually credit these deposits through the “transaction history” page on Binance. The new system will no longer automatically credit deposits made to expired addresses. To acquire new deposit addresses and memos, users can access their accounts through the official Binance app or website.
Binance.US market share drops
Binance.US, the United States wing of CZ’s exchange, has reportedly experienced a significant drop in its market share, exceeding 20%, due to an ongoing lawsuit initiated by federal financial regulators.
As per a report by Reuters on July 5, citing data from Kaiko, Binance.US witnessed its market share in the U.S. decline from over 22% in April to approximately 0.9% as of June 26.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit in June against Binance.US, along with Binance and its CEO Changpeng “CZ” Zhao, alleging their operation as an unregistered securities exchange. Preceding this, the Commodity Futures Trading Commission had previously lodged a comparable lawsuit against Binance and CZ in the month of March.
The Ethereum developers have now finalized the complete set of improvements and changes that will shape the network’s future.
With a focus on enhancing scalability, reducing transaction fees, and introducing cutting-edge features, the Dencun upgrade is poised to revolutionize the Ethereum ecosystem,
Read on to learn the details of these exciting developments and their potential implications for users and the broader cryptocurrency community.
‘Dencun’ Upgrade: Cementing the Future of Ethereum
The Ethereum developers have agreed upon the comprehensive scope of the ‘Dencun’ upgrade, making a crucial milestone in the network’s evolution. This hard fork, expected to occur later this year, incorporates five Ethereum Improvement Proposals (EIPs) designed to address key challenges faced by the network.
Here are the five EPIs.
- EIP-4844: Scaling Ethereum by increasing data storage for “blobs” to lower gas fees.
- EIP-1153: Reducing on-chain data storage fees to enhance blockspace.
- EIP-4788: Enhancing bridge and staking pool designs for improved functionality.
- EIP-5656: Making minor code changes to enhance the Ethereum Virtual Machine.
- EIP-6780: Eliminating code that could potentially terminate smart contracts.
Introducing ‘Blobs’: Enhancing Speed and Reducing Costs
At the heart of the Dencun upgrade lies EIP-4844, also known as proto-danksharding. This game-changing feature will scale the Ethereum blockchain by expanding storage space for data in the form of ‘blobs’. These blobs will serve as external storage for Layer 2 transactions, significantly lowering costs and increasing transaction speed. Users can expect a dramatic reduction in fees, making Ethereum more accessible and efficient.
Institutional Demand Drives Ethereum to New Heights
Ethereum’s journey toward scalability and improved functionality has attracted strong demand from institutional investors. As a result Ethereum recently reached a new all-time high. This positive trend not only validates Etheruem’s potential but also underscores the confidence in the network’s development roadmap and upgrades like ‘Dencun.’
EIP-4844: Alleviating Gas Fee Concerns
One of the persistent issues faced by Ethereum users has been the high gas fees required to execute transactions. However, with the introduction of EIP-4844 in the upcoming ‘Dencun’ upgrade, these concerns are set to be alleviated. The improved scalability and optimized storage capacity will lead to a significant reduction in gas fees, enhancing the overall user experience.
In short, what the new developments indicate is that Ethereum aims to address longstanding challenges and make significant strides toward becoming the go-to platform for decentralised applications and smart contracts.
Exciting times lie ahead for Ethereum, and users are encouraged to stay tuned to Coinpedia for further updates as rigorous testing of the ‘Dencun’ upgrade commences.
Layer-2 chains like Polygon brought valuable contributions to the Ethereum network by improving transaction speeds, and scalability, and reducing costs. As such, they act as settlement layers complementing the Ethereum Mainnet, but are they still relevant after the upgrade?
When is the Ethereum Merge?
The Ethereum Merge, also known as Ethereum 2.0 or ETH2 was planned and occurred in multiple phases including the Shanghai upgrade and sharding. The final phase occurred on September 15 2022 and featured the merging of the Ethereum mainnet with the new Ethereum 2.0 Beacon Chain.
What is Polygon?
Polygon (MATIC) Network is a protocol and framework built on top of the Ethereum blockchain. It strives for scalability and better user experience for dApps and blockchain-based projects. Polygon offers a multi-chain system of interconnected sidechains. It aims to offer a seamless bridge between the Ethereum network and other blockchains, allowing for the smooth transfer of assets and data across different ecosystems.
Is Polygon Still Relevant After the Merge?
The Ethereum merge focused primarily on the Ethereum mainnet and does not directly affect the operations or functionality of Polygon. Polygon is a separate protocol and framework built on top of Ethereum, providing scalability solutions and additional features to enhance the Ethereum ecosystem. While the Ethereum merge will introduce significant changes to Ethereum’s underlying consensus mechanism, Polygon will operate its independent sidechains. However, the Ethereum merge can indirectly impact Polygon and other projects built on Ethereum. The merge is expected to improve the overall scalability and efficiency of the Ethereum network, which could benefit Polygon by reducing congestion and gas fees on the Ethereum mainnet. As Ethereum becomes more scalable and sustainable, it may attract more developers and users to the Ethereum ecosystem, potentially increasing the demand and adoption of solutions like Polygon.
Avorak AI’s Analytics
A deep analysis by Avorak AI reveals a status quo after the Ethereum merge as no significant changes are forthcoming months later Avorak AI deploys advanced machine learning algorithms to perform market intelligence and relay valuable insights to interested parties. Through its Avorak Trade Bot, Avorak monitors markets around the clock and analyzes vast data to present accurate findings that help in crypto trading. The bot eliminates the human limitations of fatigue and emotional decisions. Traders can automate their trades through easy-to-use command lines and a friendly user interface.
Avorak’s services are available through its native token, AVRK, currently going at $0.255 in Avorak ICO phase seven and expect to launch at $1. The project rewards investors with on-top bonuses and priority staking when it goes live. Four exchanges have already confirmed listing AVRK, including Azbit and LAToken. Avorak has fortified its systems and sealed any loopholes through two audits by CyberScope and SolidProof. AVRK’S performance of 325% has attracted many sentiments from crypto enthusiasts who believe the project is a potential 100x.
Avorak Write enters the market with solutions to problems plaguing the existing content writing tools. It utilizes advanced APIs and a language bank that edit and auto-correct text before producing the final product. Avorak Write can help in producing and analyzing reports about the aftereffects of the merge and the pending issues needing attention.
AI analytics points to adjustments in Polygon operations under Ethereum. The merge might in the long run drive out layer-2 protocols.
Learn more on Avorak AI and ICO here:
Binance has announced its support for the upcoming Optimism (OP) network upgrade and a hard fork, scheduled to occur on June 6, 2023, at 16:00 (UTC). Starting from approximately 15:30 (UTC) on the same day, deposits and withdrawals of OP will be temporarily suspended. However, the trading of OP will remain unaffected during this period. The exchange will handle all the necessary technical aspects for its users holding OP, ensuring a smooth transition. It’s important to note that no new tokens will be created as a result of the network upgrade. Once the upgraded network is deemed stable, Binance will reopen deposits and withdrawals without further notification to users.
BNB chain upgraded on June 11 at 21:30(UTC), better networks attract investors, and users, and improve Blockchain development. BNB chain increases token value with fees and voting. LUBAN Fork enhances BSC speed security with BEP-126, 174,&221. BEP-126 adds “Fast Finality” to prevent reversal to blocks. Blockstore secure store data on Blockchains, BEP-174 improves BSC bridge safety. Relayers bridge tokens between Blockchains for seamless transactions. Whitelisted relayers require complex manual addition, BEP-17 adds on-chain relayer managers and managers handle relayer enrollment for crisis flexibility.
TMS Network Raises $5.2 Million, While Cardano Fails to Benefit from Its Upgrade, and Solana Plummets Further
Today, there are thousands of cryptocurrencies and blockchain-based projects, each with its unique set of features and potential for growth. With so many options available, it can be overwhelming to choose the cryptocurrency or blockchain to invest in or use for your business. In this article, we’ll be focusing on three popular blockchain platforms – TMS Network (TMSN), Cardano (ADA), and Solana (SOL).
Experts recommend Cardano (ADA) investors to stay cautious
As investors in the Cardano project looked for signs of growth after the launch of its delayed Vasil upgrade a few months back, ADA volatility increased in 2023. This has made predicting the price of Cardano (ADA) a bit more difficult than it may have been otherwise, especially in light of a market upturn in early 2023. The recent price analysis of Cardano (ADA) indicates a significant bearish trend, as the coin has recently broken much below its price levels that were achieved in January. Since the month’s opening, sellers have been exerting pressure on the price. As of writing, Cardano (ADA) is trading at $0.36, and is trending down. The bears have been exerting significant effort to push the price of Cardano (ADA) further below. Currently, the price of Cardano (ADA) is showing that the coin is continuing its downward trend, and has plummeted by 7% in a month. Additionally, Cardano (ADA) has also dropped 88.30% from its peak value of $3.10.
Solana (SOL) drops by 8.48% in a month
The monthly price chart for SOL reveals a significant decrease below $22 due to selling pressure from investors. Strong bearish pressure in the market has brought Solana’s (SOL) price down to a new monthly low. The possible reason for this decline is the overbought condition that has been attained as Solana (SOL) continues its climb. The upswing in Solana’s prices (SOL) has been paused currently as the price is facing rejection at its peak prices. In the coming weeks, technical experts suggest that the price of Solana (SOL) will stay confined to a limited range between $20 and $23. In the past month, buyers were controlling the price action, but now sellers have been making profit, pushing the price of Solana (SOL) down. Once the bears halted the ongoing bullish lead, the price of Solana (SOL) moved down to $20.57, where it has stayed since. If the current selling pressure in the market continues, the price can fall considerably. The price of Solana (SOL) dropped 7.41% this past week.
TMS Network’s (TMSN) price grows to $0.088
The revolutionary decentralized platform of TMS Network (TMSN) has taken over the trading industry. TMS Network (TMSN) is a cutting-edge trading solution that leverages the Ethereum blockchain to address critical challenges in the crypto industry. TMS Network (TMSN) decentralized trading platform aims to disrupt the conventional trading paradigm by enhancing accessibility, efficiency, and security. By cutting out the middleman, TMS Network (TMSN) is able to provide its users with more favourable trading conditions, faster transaction times, and reduced fees.
The current presale value of TMS Network (TMSN) stands at $0.088, marking a threefold surge from when it first launched. Based on market analysis, there is a strong possibility that TMS Network (TMSN) may experience a significant surge in value, potentially exceeding $1.00 by year-end. This could result in substantial returns of up to 100x for investors who choose to allocate their resources towards TMS Network (TMSN).
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The Ethereum (ETH) market is on the cusp of significant correction after the new year crypto relief rally seems to be fading away. While the Ethereum prices have maintained a rising trend through higher highs and higher lows, the bulls have struggled to reclaim post-Shanghai tops of about $2,122. The king of smart contracts and the second largest digital asset by market capitalization is, therefore, likely to consolidate horizontally in the coming days before the tug-of-war between the bulls and the bears is decided.
Lido (LDO) Unlocks 270k Ethereum Units
Lido Finance, one of the largest ETH liquid staking programs, announced that the final on-chain vote for the V2 upgrade is scheduled for Friday, May 12th.
“If no last-minute findings are surfaced and the vote is successful, Lido V2 will be live after the vote enactment on May 15th,” Lido noted.
With the V2 upgrade expected to pave the way for new Ethereum staking modules, the company opted that about 270k Ethers with approximately $500 million at current prices will be made available.
Unlocking such a huge amount of Ether at once is likely to induce sell market pressure in the short term.
ETH Price Action
The Ethereum price is sitting at a crucial support level, which suggests the buyers could be outpacing the short sellers. Notably, Ethereum price has formed a possible triple bottom on the four-hour timeframe, with a linear bullish divergence on the RSI.
However, a capitulation could occur if the Ethereum bulls struggle to hold the current support and it gets converted to a resistant zone. In that case, the next temporary solace that Ethereum can find is around $1,700 before the bulls regain control.
The Ethereum ecosystem has been conducting several upgrades in recent years to achieve optimal blockchain performance in terms of security, decentralization, and scalability. With the successful development of the beacon chain and the merge event in 2021, the Ethereum network has transitioned to the Proof-of-Stake consensus mechanism. However, the journey to perfecting the blockchain trilemma is far from over.
Ethereum’s Scaling Efforts through Proto-Danksharding
The Ethereum core developers are currently focused on scaling the network to handle millions of transactions per second through rollups. Proto-Danksharding, an intermediate of Danksharding, is expected to decrease rollup fees by more than 20 times. According to Thor Hartvigsen, a Computer Science and economics major and DeFi researcher, data availability is the primary bottleneck for Ethereum scaling, with an estimated 90% of transaction costs on rollups being used to pay for posting data on Ethereum.
Understanding Proto-Danksharding’s Benefits
Proto-Danksharding enables rollups like Arbitrum and Polygon to add cheaper data to blocks, leading to cheaper transactions for end-users. The introduction of data blobs that can be sent and attached to blocks reduces the cost of data and makes it more accessible for rollups. The data in these blobs is not accessible to the EVM and is automatically deleted after a fixed period.
The Future of Ethereum’s Scalability
The development of Proto-Danksharding marks an important milestone in Ethereum’s scalability efforts. As the network continues to improve, it is likely that other upgrades and solutions will emerge to help Ethereum achieve its goal of optimal blockchain performance. The pursuit of the blockchain trilemma is a never-ending journey, and the Ethereum ecosystem is on its way to achieving it.
The Bitget exchange has been making headlines in recent months after its native BGB token reached an all-time high of $0.51, spiking interest on the part of traders towards the platform’s multiple services. The exchange has been betting heavily on expansion into Web3 and real-world space after Managing Director Gracy Chen took up the lead and announced the new and updated ‘Go Beyond Derivatives’ strategy. The release of a new white paper for the exchange’s native BGB token should come as no surprise in light of recent acquisitions and promises for greater utility and benefits to platform users.
The BGB token currently has a circulating supply of 1.4 billion of the 2 billion total supply, making the need for a deflationary mechanism necessary – a point explored in detail in the new white paper document. A burn mechanism will be implemented to ensure BGB price stability, considering that the asset currently holds 9th place in Coingecko’s CEX token list and sports an impressive daily trading volume of over $10 million. The 500% trading volume growth experienced by BGB since February makes the application of a burn mechanism logical, especially in light of a major audience boost that Bitget received with the acquisition of the BitKeep Wallet with its 9 million user base.
On top of the burn mechanism, BGB will be receiving a host of new functionality, which includes its own reward lottery – a utility users are sure to enjoy and appreciate. The token will be given its own trial fund as well, a feature essential for advancing futures trading and increasing the security of traders on the floor.
Bitget prides itself on its broad range of offered services, which include the Launchpad and Launchpool. Users will now be able to access both services with greater ease via the use of the BGB token. Voting on new project listings and participation in promising project launches is certain to attract the interest of both existing and new users to the exchange, making use of the BGB token even more necessary.
In addition to the aforementioned features, the new white paper outlines more use cases for the BGB token, including various benefits, such as zero fees for trading and rewards. The expansion of such perks is crucial to both bootstrapping and retaining holders, making the BGB token more than just an asset for long-term portfolio addition, but a real instrument for platform use.
The Bitget exchange is making great strides in its advancement into the Web3 space, endowing the native BGB token with new features that would make it a go-to access card for a variety of services. The exchange’s efforts at joining various social initiatives aimed at empowering and supporting youth through sports club partnerships is clearly meant to advance crypto adoption and education. The exchange has recently announced partnerships with Lionel Messi and the Juventus football club.
The recent Ethereum Shanghai upgrade, which occurred just five days ago, has led to a remarkable surge in the asset value, up by approximately 10% to trade at around $2,100 on Monday. This has pushed Ethereum to scale to an impressive 11-month high, with bulls eagerly approaching a crucial resistance/support level between $2,274 and $2,662.
However, with the ongoing re-balancing of the staked ether, volatility in this second-largest digital asset is expected to remain high, adding to the excitement of crypto traders and investors.
The Ethereum Staking Program: An Analysis
Since the Shapella/Shanghai upgrade took place on April 12, a total of 1,024,099 ETHs, worth approximately $2.15 billion, have been withdrawn, according to a market intelligence platform Lookonchain. Reportedly, three ETH whale addresses re-staked their assets, amounting to 19,844 Ether, after withdrawal. However, three other whale addresses sent their withdrawn ethers, amounting to 71,444 ETH, to centralized exchanges for liquidation.
Restaked Assets and Liquidation Post Upgrade
The firm identified several instances where ETH whale stakers withdrew their assets and sent them to centralized exchanges including Binance, Huobi, and Kraken. Nonetheless, successful withdrawals after the Shanghai upgrade amount to 158,592 ETH amounting to approximately $333 million.
Lookonchain has identified 13 ETH whale addresses that have re-staked their assets. Reportedly, a total of 34,198 ETH amounting to approximately $72 million has been staked since the Shanghai upgrade.
Following the Shanghai upgrade, the total number of validators dropped by less than 2k to stand around 561,655 on Monday. With the total staked Ether at around 17.9 million, the general outlook for the Ethereum ecosystem is bullish. Meanwhile, crypto enthusiasts in the United States are not able to stake ETH following regulatory scrutiny by the SEC.
Ethereum recently surged past the $2,000 mark for the first time since August 14 last night. This 8-month high has traders curious whether it’s a temporary surge or the beginning of a prolonged rally, especially as Ethereum approaches its all-time high from November 2021. Santiment, the renowned crypto analytics firm, weighed in on this development and shared its insights on Ethereum’s performance.
The MVRV Factor: Warning Signs Ahead
Santiment highlights the importance of monitoring average trading returns, with Ethereum being a zero-sum trading game like any other asset. A 30-day MVRV (Market Value to Realized Value) of 15% or more serves as a danger zone, signaling a potential correction.
As of now, Ethereum’s 30-day MVRV stands at 9.95%, which, although above 0, does not pose an immediate threat. However, it’s worth noting that the 365-day MVRV is at +29%, the highest since December 27, 2021, which raises some concerns for long-term traders.
Perpetual Contract Funding Rates: A Wild Ride
Santiment also advises keeping an eye on perpetual contract funding rates, particularly on the Deribit exchange. Over the past three months, Deribit has seen significant fluctuations between shorts and longs. With shorting currently prevalent, the firm believes more liquidations may fuel price increases.
As Ethereum crossed the $3,000 threshold, the profit vs. loss transaction ratio spiked to its highest level since January 20th. With 2.59 times as many transactions in profit compared to those in loss, Santiment interprets this as a short-term bearish signal. Historical trends indicate that heavy profit-taking can temporarily push prices down.
Shark and Whale Behavior: Mixed Messages
Evaluating shark and whale address behavior during this market cap growth phase is crucial, and Santiment focuses on addresses holding between 10 and 100k ETH. The firm’s analysis shows that:
- The 10-100 ETH tier has been profit-taking for about a month, with supply held fading slightly.
- The 100-1,000 ETH tier has experienced a noticeable drop since mid-March.
- The 1,000-10,000 ETH tier looks strong, with the supply held increasing over time.
- The 10,000-100,000 ETH tier has declined swiftly, dropping to levels unseen since October 2022.
A Slightly Disappointing Outlook, But Still Optimistic for 2023
Although more indicators point to bearishness, Santiment still maintains an optimistic outlook for Ethereum in 2023. With the successful merge just seven months ago, Ethereum’s #2 market cap status remains exciting. However, traders should anticipate volatility around the $2k level as bulls and bears battle it out. Ether currently trades at $2,119.
The Ethereum price received the required push as the Shanghai Upgrade went live a short while ago. Soon after the upgrade, more than $200 million worth of ETH has already been withdrawn, while 3.5% of the total validators are still waiting to withdraw. However, Glassnode has already predicted that the withdrawal amount may reach up to $300 million, but the current facts suggest the levels may rise in the coming hours.
The Aftermath of the Shanghai Upgrade!
Ever since the ETH 2.0 Beacon Chain was launched, the validators began to stake their ETH over the smart contract to trigger the Merger. The Beacon chain was further merged with the mainnet, and the Ethereum network was transposed from Proof-of-work to Proof-of-Stake without halting the network. Even after the merge, the validators continued to stake their ETH over the network, which reached the ATH of over 19.19 million.
In the meantime, liquid staking platforms like Lido DAO gained huge attention as users used the platform to stake locked ETH and earn rewards. Now that the ETH has been unlocked, a total of 63,695 ETH have been withdrawn from the platform, accounting for 57.2% of the total withdrawals.
As many as 16 withdrawals can be processed in a single block, and 115,200 validators can process withdrawals per day. Regardless of other factors, it took 5 days to process withdrawals from 567,201 validators. However, it is said to be a slightly tedious job to withdraw ETH smoothly. One needs to change the 0x00 withdrawal certificate to 0x01 after the Shanghai upgrade. However, you need to provide a withdrawal address.
Will this Impact the Ethereum (ETH) Price?
The FUD of ETH flooding into the market has been circulated ever since the staked ETH levels began to mark new highs almost every day. Therefore, many experts believed the price may fall prey to either, ‘buy the rumour, sell the news’ or else massive selling pressure may knock in slashing the prices lower.
Ethereum, along with other top cryptos like Bitcoin, witnessed a fine upswing ahead of the upgrade. While many believed this may be a short-term rally, the ETH price consolidated for a while and breached the resistance to rise above $2000 in no time. Hence, indicating the upgrade, specifically, the withdrawals have not largely impacted the Ethereum price or any other crypto within the markets.
The Ethereum Shapella upgrade has been officially executed, providing an opportunity for Ethereum validators to withdraw their staked Ether.
The upgrade has been welcomed by the crypto community enthusiastically.
Zhuling Chen, the CEO of blockchain service company RockX, has expressed his optimism about the development, saying that it would change the landscape for ether token holders.
The Shapella upgrade is the major update the Ethereum blockchain has witnessed in its recent history.
If you are a cryptocurrency enthusiast, this development must be something that can trigger your curiosity.
Let’s try to comprehend the development better!
A Quick Overview: Ethereum Blockchain
Here we are trying to explore a development that has happened in the Ethereum blockchain.
Better is to start the discussion from the point ‘what is Ethereum blockchain’, as it is always better to approach a concept from its bottom.
The Ethereum blockchain is a decentralised platform that runs applications and smart contracts, using Ether (ETH) as its cryptocurrency.
Shapella Upgrade: What You Don’t Know
The Shapella upgrade is the talk of the town.
In every discussion platform, this topic is being discussed aggressively and enthusiastically at this juncture.
Why is this development considered crucial? Why, all of a sudden, has this become a hot topic of discussion?
Of course, there must be a solid reason.
Shapella upgrade, also known as the Shanghai Capella upgrade, marks a significant milestone in the Ethereum blockchain’s transition from Proof-Of-Work to Proof-Of-Stake mechanism after “The Merge”.
The upgrade enables validators to withdraw stETH tokens on the Beacon chain, which currently holds over $18 million worth of ETH tokens staked since 2020.
In addition to this, the upgrade includes vital changes in the execution and consensus layers along with enhancements to the Engine API.
Shapella: What Validators Needs To Know
Now, you know that the Ethereum blockchain has executed a crucial upgrade, which has the calibre to redefine the course of the platform and also can determine the future of the network.
This stage, the big question that requires clarity is the point of purpose.
Generally speaking, the purpose of this update is to enable staking validators to withdraw their funds for the first time.
At present, $34 billion or 18.14 million Ether is locked into the Beacon chain contract, which is the proof-of-stake chain that runs in parallel with the current proof-of-work chain.
Post the update, validators would be able to withdraw their funds, subject to specific rules and thresholds built into the upgrade.
The Impact Of The Update
The interesting point is that the update has the potential to impact both the execution and consensus layers of the network.
The Shapella upgrade is a combination of the Shanghai upgrade and the Capella upgrade.
The focus of the Shanghai upgrade is upgrading the network’s execution clients. Meanwhile, the focus of the Capella upgrade is upgrading the consensus clients.
Execution clients are responsible for executing smart contracts and transactions, while consensus clients are responsible for validating transactions and creating new blocks.
The update is less likely to impact average Ethereum users.
Meanwhile, the development requires validators to upgrade their clients to ensure they can continue to participate in the proof-of-stake consensus mechanism.
Understanding Proof-Of-Stake & Proof-Of-Work
In this short discussion, a few complex concepts have been introduced to you. One such concept must be ‘Proof-Of-Stake’.
You don’t have to think too much to understand this concept.
To explain this concept, let us help you understand how this network validates transitions and creates new blocks.
The network uses a proof-of-work consensus mechanism, which requires miners to solve complex mathematical problems to validate transactions and create new blocks.
However, the network is moving towards a proof-of-stake consensus mechanism, which relies on validators who lock up a certain amount of Ether to secure the network and validate transactions.
The Future of Ethereum Post The Upgrade
Maybe, you are curious to know what this upgrade says about the future of Ethereum.
The upgrade has been welcomed by the crypto community wholeheartedly.
A total of $34 billion or 18.14 million ETH is currently locked in the Beacon chain contract, which is now eligible to be withdrawn.
This represents the first significant chunk of staked ETH supply to hit the open market.
It’s likely that some portion of this will be sold.
The impact of this upgrade on the price of ETH is likely to be minimal, as a significant portion of the staked ETH are expected to be re-staked.
Ethereum has rallied 6.1 percent in the week leading into the upgrade, indicating the bullish sentiment in the market.
How withdrawal of ETH works?
The most sensational question about this topic at this juncture is ‘how the withdrawal of ETH works’.
Maybe, deep inside your mind, you also have the same doubt.
Let us bring the spotlight of knowledge over the doubt.
Currently, there are more than 18.2M ETH deposited on the Beacon Chain, with an additional 1M ETH in accrued staking rewards since staking went live.
Validator exists undergo a full withdrawal process, while accrued rewards are eligible for partial withdrawals, which are expedited.
Full withdrawals have to go through two queues, withdrawal and exit, which serve as a delay before becoming fully liquid.
Around 57,000 ETH are eligible to be withdrawn every day through full withdrawals at this juncture.
In the first 54 days post the upgrade, over 3.3 ETH can move to exit the Beacon Chain.
Meanwhile, partial withdrawals or staking rewards can become liquid near instantaneously and bypass the queues.
However, it will take about 4.75 days post-Shapella for accrued staking rewards to be withdrawn.
If the price performance of Ether is any indication, the long-awaited upgrade turned out to be a non-event, as many had predicted.
Within minutes after the upgrade, Ethereum saw only a 1 percent increase in price, with minimal fluctuations as it hovered around the $1,900 mark.
The upgrade is a significant milestone for the Ethereum network, as it moves away from the previous proof-of-work (PoW) consensus mechanism to a more energy-efficient PoS mechanism.
Ether Price Up 2.8% in Past 24 Hours
Following the upgrade, the Ether price is up approximately 2.8% in the past 24 hours to trade around $1,924 on Thursday. The weekly bar is retesting last August’s highs, which are considered a significant resistance level.
Analysts Monitor On-Chain Data for Withdrawals
With withdrawals of the 18 million staked Ether estimated at around 50,400 ETH daily, crypto analysts are closely monitoring the on-chain data to identify the pressure of sell and buy. According to data provided by token.unlock, about 695,750 Ether is currently pending withdrawal.
Following the successful Shapella upgrade, on-chain analysis platform Spot On Chain identified 17,091 Ethers worth approximately $32 million withdrawn from the staking program. The firm noted that the first 5,757 ETH have already been processed. This comes after the firm identified several ETH whale transactions that depicted bearish sentiment.
Nonetheless, Twitter user @LucasNuzzi has identified big spot orders on Coinbase that are perhaps responsible for the recent spike.
Withdrawals Could Heighten in Coming Days
Following the pressure from the United States Securities and Exchange Commission (SEC) on centralized exchanges, staked Ethereum withdrawals could heighten in the coming days. According to data from Nansen, Huobi ranks first among the entities awaiting the withdrawal of staked ethers. PieDAO, Kraken, and Heavy Dex Trader 0xa3d are other top entities seeking withdrawal of staked ether.
Withdrawal Processing Time
Nevertheless, crypto exchange Binance has cautioned that withdrawal of staked Ether could take up to 15 days to several weeks to be fully processed.
Consequently, liquid staking programs like Lido DAO – LDO is up 6.4% today to trade around $2.36 – are expected to gain more traction ahead.
The Ethereum Shanghai Capella upgrade, also known as “Shapella,” has successfully completed. This highly anticipated upgrade is a significant milestone for the Ethereum ecosystem and marks the completion of its famous transition to a full proof-of-stake consensus mechanism. With the upgrade, users can withdraw their staked ETH, a crucial feature of the new proof-of-stake system.
Withdrawals After the Upgrade
The Shanghai upgrade was triggered at 22:27 GMT and finalized at about 22:42 GMT. Within half an hour after the upgrade was activated, nearly 285 withdrawals in epoch 194,408 had been processed, for about 5,413 ETH ($10 million worth). As per Coin Metrics, 1.2 million ETH tokens worth over $2.3 billion as of the current price will be available for withdrawals over the next four to five days.
Notably, not all 18 million ETH staked on the network will be available for withdrawal at once, as limits have been kept on this. Ethereum will only permit 1,350 full validators to withdraw their stake each day over the next 18 months. Because each validator stakes 32 ETH, no more than 43,200 ETH—which is $83 million at current prices—can enter the market per day.
Impact on ETH Price
At the time the Shanghai hard fork was triggered, the price of ETH remained largely flat, while about 4000 people tuned into a Shapella Mainnet Watch Party hosted by Ethereum Cat Herders. Yet, with the withdrawal mechanism going live, there could be short-term ETH price fluctuations in the near future. Although the coin has already immediately crossed the $1,900 mark, it is important to note that the full impact of the upgrade on Ether’s price is yet to be seen.
The Shanghai Upgrade Brings Other Improvements
Apart from enabling withdrawals, the Shanghai upgrade includes other improvements, such as a basis for conditional or cancellable payments, features that will reduce contract size and certain contract risks, and improvements that will lower gas fees for developers. It also introduces a feature that allows validators who previously staked ETH on-chain to withdraw those tokens for the first time.
The next major Ethereum upgrade is titled Cancun, which will feature proto-dank sharding, a feature that aims to improve scalability by improving fees and transaction times. While the Shanghai upgrade has been a major development for Ethereum, very significant things still need to be done, but those significant things can be safely done at a slower pace, as was stated by Ethereum founder Vitalik Buterin.
In the run-up to Ethereum’s highly anticipated Shanghai upgrade, the second-largest cryptocurrency by market cap is struggling to maintain its momentum, hovering around the $1.9K mark. Investors and traders seem to demonstrate a classic “sell the news” behavior as the upgrade draws near, with traders taking profits before the event unfolds.
Ethereum Shows Strong On-Chain Data
The Ethereum network is set to undergo a momentous upgrade, known as Shapella, which will finally enable investors to access and redeem the offshoot of Ether tokens they have staked in return for interest over the past three years. Scheduled to occur around 22:27:35 UTC today, the Shapella upgrade has been confirmed by Tim Beiko, a prominent figure in the Ethereum Foundation – the organization that serves as the voice of the Ethereum network.
Concerns surrounding the potential risks of Ethereum’s (ETH) unstaking activation may be largely overblown. The net selling impact is likely to cause only modest price fluctuations, according to on-chain data.
As Ethereum’s (ETH) Shanghai upgrade approaches, speculation abounds that around 170,000 ETH, valued at approximately $323 million, could be sold following its implementation. However, leading on-chain analytics firm, Glassnode suggests that this anticipated influx of liquidity may not have a significant impact on market prices.
Consequently, three distinct scenarios have emerged regarding the potential selling pressure on Ethereum (ETH). The most pessimistic or “bearish” case envisions a massive liquidity influx of 1.54 million ETH, equivalent to $2.93 billion. However, this scenario is deemed highly improbable. Instead, a more plausible estimate of 170,000 ETH becoming liquid appears viable, supported by a comprehensive set of economic calculations.
What Lies Ahead For ETH Price?
Today, buyers effectively safeguarded the 20-day EMA at $1,830 for Ether, signifying a sustained positive trend for the cryptocurrency. Following the Shanghai upgrade, bullish investors are expected to tackle the resistance at $1,940, aiming to propel the price toward $2,193.
However, sellers will probably put up a strong defense in the $2,000 to $2,200 range. If the ETH price reverses from this zone without breaching the 20-day EMA, it may indicate that the rally has the potential to extend further.
At the time of writing, ETH is trading at $1,908, experiencing a slight dip of over 0.5% in the past 24 hours. Leading crypto analyst, TradingStat, forecasts an imminent breakout above the $2,000 threshold. If the ETH price surpasses the resistance line of its double-top at $1,940, investor buying pressure is expected to rise in anticipation of the Shanghai upgrade.
On the flip side, a minor sell off may emerge following the upgrade, potentially causing the ETH price to face rejection near the $2,200 mark.
Ethereum, the second-largest cryptocurrency by market value, is preparing for a significant update known as the Shanghai upgrade that is going to happen later today. As this critical event is upon us, notable Ethereum whales, such as Blockchain Capital, are making significant trades on the market in anticipation of potential market volatility.
Blockchain Capital Sells Lido DAO (LDO) Tokens
According to data from analytics provider Lookonchain, Blockchain Capital recently sold 1.5 million Lido DAO (LDO) tokens at a price of $2.33, generating a profit of $1.05 million. The firm initially purchased the LDO tokens with 1,000 ETH at an average price of $1.64 between Jan. 27 and Feb. 21, 2022. By selling these tokens, they received 1,871 ETH, valued at $3.57 million.
In addition to LDO tokens, Blockchain Capital bought and sold RPL, a popular cryptocurrency. According to Lookonchain, the company bought 59,236 RPL(new) with 2M $USDC at $34 on Apr 15, 2022, and bought 61,539 RPL(old) with 600 ETH($2.15M at that time) at $35 on Oct 8, 2021. They later sold 65,352 $RPL for 1,522 $ETH($2.9M) at $44, resulting in a profit of approximately $1.09 million.
Shanghai Upgrade May Have a Neutral to Bearish Impact on ETH Price
Although the Shanghai upgrade is expected to have a bullish impact on Ethereum’s ETH in the long run, leading Ethereum quant traders predict that the short-term price action will be neutral to potentially bearish. This prediction is due to the expected significant increase in the circulating supply of ETH after investors are finally able to withdraw their stakes.
However, after the Shanghai fork, staking yields from ETH could be similar to the risk-free rate that traditional capital markets use to price their assets. This development may attract more institutional capital into the crypto economy and increase liquidity and trading of Ethereum (ETH).
Limited Selling Pressure on Ethereum
Investors may be concerned that the Shanghai upgrade could cause a large sell-off of ETH, some of which has been staked since 2020. However, data from CryptoQuant suggests that this analysis is overstated.
60 percent of the staked ETH supply, or approximately 10.3 million ETH, is currently at a loss. Furthermore, Lido DAO, the largest Ethereum staking provider, holds 30% of all staked ETH at an average loss of $1,000. This suggests that there may be limited selling pressure on the Ethereum market in the short term.
The much-anticipated Shanghai upgrade for the Ethereum ecosystem is here, and with it comes a shift in the economic dynamic. As of today, over $33 billion in staked Ether will be available for withdrawal.
However, the liquidation of staked Ether will not be immediate, as only a small portion representing approximately 1.1 million ETH will be available for withdrawal by validators in the next five days. The rest of the assets will take a year and a half to become liquid, assuming all validators choose to unstake their Ether.
Altcoins On The Rise
Ethereum, as a large-cap altcoin with a market capitalization of approximately $225 billion, is expected to experience lower volatility compared to medium or small-cap altcoins with greater potential for growth. However, as the Ethereum ecosystem transitions to a new economic model, crypto analysts are identifying alternative altcoins that could be on the brink of a significant upsurge.
Polygon Attracts Buying Pressure
Polygon (MATIC) is one such altcoin that has recently attracted significant buying pressure from over 52,000 addresses. Crypto analyst @ali_charts suggests that these addresses have formed a strong support zone for MATIC, which could fend off new lows for the asset. The analyst notes that MATIC must tackle the resistance level between $1.14 and $1.30 to guarantee a solid breakout.
Positive Sentiments Spike For Avalanche
Another altcoin that could register higher gains amid the Ethereum Shapella upgrade is Avalanche (AVAX). According to market intelligence platform Santiment, the social volume and positive weighted sentiment in the AVAX market have significantly spiked in the recent past.
An XRP Rally Is Coming
Finally, Ripple-backed XRP has the potential to experience a 47% upsurge if the asset secures a three-day candlestick close above $0.54, according to @ali_charts.
Overall, as the Ethereum ecosystem undergoes changes with the Shanghai upgrade, it will be interesting to see how these alternative altcoins perform in the coming weeks.
Which altcoins are you betting on this altseason?
After months of meticulous preparations, the Ethereum validators can take a moment of relief as their staked Ethers will be available for withdrawal from today. The Ethereum Shapella or Shanghai upgrade will take place at epoch 194048, scheduled for 22:27:35 UTC on Apr. 12, 2023.
The Ethereum Shapella upgrade combines changes to the execution layer (Shanghai), consensus layer (Capella), and the Engine API. Among the expected changes with the hard fork include EIP-3651 on the Warm COINBASE, EIP-3855 that focuses on PUSH0 instruction, EIP-3860 pertaining to the Limit and meter initcode, EIP-4895 that entails the Beacon chain push withdrawals as operations, and EIP-6049 that works on Deprecate SELFDESTRUCT.
As a result, Ethereum validators and node operators are requested to work in collaboration to enable a smooth transition.
Economic Changes in Ethereum Ecosystem
With the Shapella upgrade, over $34 billion worth of ether will be made available for withdrawal and liquidatable on the secondary market. However, Ethereum withdrawals are expected to be enabled in two ways including partial and full withdrawals. In the partial, Ethereum validators will access anything above the 32 ETH staked including rewards and excess balance payments.
With about 563k Ethereum validators, the total amount of partial withdrawals are expected at around $2 billion and will happen in the next five days. As a result, the selling pressure on the second-largest digital asset will not be enormous to strain the market.
On the other hand, a full withdrawal will enable the validators to access the 32-staked ETH. Depending on the number of validators that are staking ETH, the number of withdrawals varies over time. Basically, the more withdrawal requests on staked eth, the fewer ethers will be processed by the network. Notably, analysts estimate a total of 500 days for the entire staked ETH to be withdrawn.
Ethereum’s price has been displaying significant strength ever since the platform made the transition from Proof-of-Work to Proof-of-Stake and merged the Beacon chain with the mainnet. However, the positive events did not prevent the price from marking a 3-digit bottom, which further triggered a massive recovery. Presently, the ETH price is following a decent upswing, which is believed to prevail until it marks the interim target at around $2200.
It is believed that the ETH price is usually prone to ‘buy the rumor and sell the news’ as it underwent a massive plunge after the rollout of ETH 2.0 in December 2020 and the merger in August 2022. However, it has to be noticed that the price soared each time before the event and plunged after the rollout. Now that the prices have soared significantly, the ‘Dejavu moment may possibly occur.
Here is the higher time frame trade set up for the Ethereum price, which is expected to trigger both the short-term bulls and the long-term bears. The price is believed to witness a notable dump soon after the upgrade, not due to the stake ETH withdrawals but the non-stakers. The market participants who have not staked their ETH are expected to create significant selling pressure and drag the prices lower to buy them at lower prices.
Therefore, a dump is expected to lower the price to close to $1600 or even below, where-in the traders may jump in to accumulate. With a strong influx of liquidity, the price is expected to shoot high, surpassing all barriers, and marking new highs for the year. Hence, the Ethereum (ETH) price prediction for 2023 at the moment appears to be around $2800 to $3200.
The much-needed catalyst for the Bitcoin price, which was stuck around $28,000, emerged in the form of the Ethereum Shanghai Upgrade. The prices of the top cryptos, like Bitcoin, Ethereum, Cardano, XRP, etc., and many more, leaped far beyond their respective resistances. The entire crypto space is currently painted green, which is assumed to be a signal of the end of the 2022 bear market.
The Bitcoin price was stuck around $28,000, as one of the major resistance levels around $28,500 acted as a tough barrier to breach. The price in the early trading hours surged beyond the milestone at $30,000, signaling the revival of the bullish trend.
Meanwhile, the upswing does seem unhealthy, and hence one of the top analysts, Kaleo, warns his 575,200 followers not to fall into the bullish trap.
The analyst also says that the year 2024 and 2025 is believed to be a ‘shitload of fun for alts’, meaning, the altcoins are believed to thrive in the coming years, outperforming Bitcoin.
Besides, the second largest crypto, Ethereum has also surged beyond the crucial resistance at $1900 and is just an inch away from achieving yearly highs above $2000. Will the upswing prevail for long or it may turn out to be the biggest bull trap ever?
It is worth noting that the current week is pretty much important not only for the crypto space but also for the equities. Not only Ethereum Shanghai upgrade will be rolled out this Wednesday but US CPI rates will also be announced. Moreover, the schedule until the weekend includes FOMC MoM, PPI inflation data, Retail Sales data, and Consumer sentiment data.
While so many events are lined up with the biggest event within the crypto space, the trend should only be considered permanent once the markets cool down.
The Ethereum price has been revving up ahead of Wednesday’s Shanghai upgrade. With the crypto market also preparing for this week’s high-impact news including the CPI, the Ethereum price is poised for increased volatility ahead. Trading around $1,855, Ethereum’s price gained about 30 percent in the last four weeks but consolidated since March 14.
Ethereum Technical Analysis
From a technical standpoint, the Ethereum price on the daily time frame has rebounded on the upper edge of the rising channel that began earlier this year. The possibility of Ethereum retracting and hitting the lower edge of the rising channel offers bulls a solid chance of entering the market.
Nevertheless, the bulls could outperform the bears in the Ethereum market and help the price push above the upper side of the rising channel.
Crypto Tony on Macro Update
Veteran crypto trader and investor with over 283k Twitter followers, @CryptoTony, is highly convinced the altcoin season is about to kickstart in the coming weeks. Moreover, the analyst noted that Bitcoin is in the last leg before a retrace below $26k.
As the hype on the Ethereum ecosystem intensifies ahead of the Shanghai upgrade, Crypto Tony expects the digital asset to rally towards between $2,100 and $2,200.
“The key level to take some profit on long positions will be around $2,100 – $2,200,” the analyst wrote.
However, before Ethereum price rallies towards the take profit range, Crypto Tony anticipates a market pullback to around $1,700. As a result, long traders can have a better chance to enter the market and book higher profits.
Nevertheless, the analyst agrees with most other crypto traders who think the 2022 bear market is over.
Ethereum’s (ETH) price has been on a winning streak for the past four months ahead of the Shanghai Upgrade. However, the upward momentum is at risk of diminishing in the next few weeks. As the digital asset revisits last August’s high of around $2,030, the ETH price is likely to rebound and follow a new falling trend. Moreover, the 50 and 200 WMAs are about to form a dreaded death cross.
The last time a weekly death cross occurred in the Ethereum market was back in mid-2019, which resulted in almost a 50 percent decline in subsequent months. If history repeats itself, you can expect the Ethereum price to revisit last June’s low of around $1000, should the weekly death cross materialize.
Ethereum Deposits Ahead of Shanghai Upgrade
Ethereum price has, however, been significantly bolstered by the staking program in the beacon chain network. Already, slightly over 18 million ETH out of 120,438,691 Ethers in circulating supply have been staked by about 563k validators. As a result, the selling pressure on the Ethereum network has been minimized.
Meanwhile, a recent study conducted by on-chain analytics platform Glassnode shows that Ethereum staking activities have significantly slumped in the recent past due to global regulatory pressures and the upcoming Shanghai upgrade.
Reportedly, Lido DAO (LDO) liquid staking program has been the favorite among Ethereum investors.
“Deposit trends by staking providers have exhibited a clear shift over time with Kraken, Binance and Coinbase jousting for deposit allocations across the Beacon Chain’s early days. As the dust settled between the three giants, it was Lido who emerged victorious, continuing to dominate deposit inflows as of present,” Glassnode noted.
Ethereum staking activities have been affected by regulatory scrutiny, particularly for the United States SEC. For instance, the SEC slapped Kraken with a $30 million fine for providing an unregistered staking-as-a-service program. Additionally, the SEC has issued Coinbase Global with a Wells notice on its staking program, which is likely to proceed as a lawsuit.
The Ethereum price is about to revisit last August’s high of slightly above $2000. The recent breakout has rejuvenated Ethereum bulls ahead of the April 12 Shanghai upgrade. Moreover, the upgrade will mark a successful transition from the power-hungry Proof-of-Work (PoW) to the Proof-of-Stake. Already, over 17.9 million Ether have been staked by about 563 validators. Notably, the Ethereum network takes pride in about 57,469,928 holders and over 2,985,081 Ether burned on the beacon chain.
More Staked Ethereum (ETH) at Loss
The upcoming Shanghai Upgrade is expected to enable the withdrawal of staked Ethereum. However, the availability of staked Ethereum will not be released all at once to avoid a market crash. Nevertheless, over 1.1 million Ether, which was awarded to validators in the past two years will be accessible for liquidation on April 12.
According to a recent report conducted by on-chain analytics firm CryptoQuant, the Ethereum sell pressure will be lower than expected after the Shanghai upgrade. Furthermore, CryptoQuant has shown that more than half of the staked ethers are at loss.
The profit and loss analysis by CryptoQuant does not however consider the possibility that Ether could spike high enough and put more validators at a profit, thus instigating increased sell pressure.
Whales On the Hunt
The Ethereum whales have, however, not shied away from stashing more coins in preparation for long-term bullish prospects. Mind you, market intelligence platform Santiment recently noted that Ethereum’s addresses holding 100-10k Ethers have accumulated $4.24 billion worth of coins in the past 9 months. Coupled with the fact that Ethereum balances on centralized exchanges have been on a decline, the Shanghai Upgrade gets even more bullish on a short-term basis.
Ethereum Price May Experience ‘Sell The News’ Trend Ahead Of Shanghai Upgrade! Here’s What On-Chain Data Says
The crypto market is excited as Ethereum, the second-largest cryptocurrency by market cap, gears up for its highly anticipated Shanghai upgrade. However, as the date for the upgrade approaches, some investors are concerned that the Ethereum price may experience a “sell the news” event. As the hype around the upgrade builds, many investors are buying Ethereum, hoping to cash in on the potential price increase. Some experts warn that the market may be overvaluing Ethereum ahead of the upgrade and that a “sell the news” event may be in the cards.
Ethereum Whales May Play Pump-And-Dump Game
With the Shanghai and Capella upgrades, also called Shapella, scheduled for launch on April 12, the ETH holder community is eagerly anticipating the event. However, despite the recent rally of the altcoin in the lead-up to the upgrade, some experts predict that the Shanghai hard fork may result in a “sell-the-news” scenario for crypto market participants.
According to Santiment, a crypto intelligence tracker, the balances of the largest Ethereum addresses are moving in opposite directions when split into exchange and non-exchange categories. The top ten exchange addresses are seeing an all-time low in Ethereum balances, while non-exchange addresses continue to climb.
This behavior indicates a decrease in selling pressure on crypto exchange platforms. This is a positive sign for the altcoin’s price and indicates a potentially bullish trend. Nonetheless, Ethereum’s price trajectory could mimic the pattern seen during last year’s Merge event, where the asset experienced a substantial surge before encountering a significant increase in selling pressure, resulting in a sharp decline in the token’s value.
What Lies Ahead For Ethereum?
The price of Ethereum surged past the $1,860 resistance zone, outpacing Bitcoin and breaking through the $1,900 resistance zone. However, the price hit a peak of around $1,942 before starting to experience a downward correction.
The $1,900 support zone was breached, leading to a drop in Ethereum’s price. It also fell below the 50% Fib retracement level from the $1,850 swing low to the $1,925 high. Despite this, the bulls came into action and prevented further decline by supporting the price above the $1,853 level.
As of writing, ETH price trades at $1,874, a decline of over 1% in the last 24 hours. Analyzing the hourly price chart, Ethereum is poised for a bearish reversal soon as it may face strong resistance above $1,900. Ethereum may begin a downward correction to the $1.8K level in the next few days. However, a rebound from that price level is expected, and ETH price may surge to $2K ahead of the Shanghai upgrade.
The Ethereum (ETH) ecosystem has significantly demonstrated its resilience after retaining its position as the second most valuable crypto asset over the years. The successful transition to Proof-of-Stake (PoS) mechanism from Proof-of-Work (PoW) via the merge last year showcased its dominance.
However, the Ethereum ecosystem is about to be tested again amid an anticipated altcoin rally through the Shanghai Upgrade. Notably, over 17.9 million Ethers staked by about 562k validators will be available for withdrawal from April 12.
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With a significant portion of the staked ether at loss compared to staking time, analysts forecast most validators will continue locking their assets until investments break even.
Shanghai Upgrade To Increase Sell Pressure
Over 1.1 million Ether have been awarded to Ethereum validators and will be available for immediate withdrawal after the Shanghai Upgrade. As a result, analysts at K33 Research said in a note to clients on Tuesday that selling pressure could heighten within the next few weeks. Additionally, the researchers at K33 highlighted the staked Ether by bankrupt Celsius, which could liquidate all to repay creditors.
“1.1m ETH related to partial reward withdrawals could face the market, while Celsius is likely to sell its 158k staked balance as part of its bankruptcy process. These two numbers represent nearly 1.3m ETH or approximately $2.4bn worth of potential sell-side pressure to face the market,” the K33 researchers noted.
The researchers went ahead to point out the Kraken staking-as-a-Service saga, whereby the exchange was forced to cease operations by the United States SEC. Notably, Kraken is expected to unstake its Ether and repay investors as the program is no longer available in the United States.
Kraken will unstake all ETH staked by U.S. investors as a result of its Wells Notice, this could entice some of Kraken’s ETH stakers to sell,” the analysts noted.