Ethereum price climbed back above $2,100 after the surge.
With the Shanghai Update, the next important step on the road to the final Ethereum 2.0 has been taken. After the major Ethereum merger in September 2022, the update, which also goes by the name Shapella, was rolled out on the night of Wednesday through Thursday. The course reacted surprisingly positively.
After the Shanghai upgrade, Ethereum saw its latest rise. Many observers feared a price drop as ETH network participants can withdraw their staked ether tokens. Before the Merger, they could stake at least 32 ETH on the beacon chain, later becoming a validator on the network. However, this ETH has been attracted.
Ethereum Price Could Keep Rising after Update – Here’s Why
Many observers assumed that the Ethereum price should drop after the upgrade, as participants would want to withdraw and trade their Ether tokens quickly. But there were no strong sales, so this did not have a negative effect on the price.
Large staked token holders will most likely sell their positions to recover funds and cash in on the progress. While some may be hurt in terms of price, they will have unlocked significant staking benefits along the way.
Selling could cause some short-term price volatility, but with more optimism propping up the market thanks to the prevailing macroeconomic factors we saw during the Merger, let’s hope this is short-lived.
Ultimately, the relief ensured that the Ethereum price remained bullish for the past 2 days. However, it is noteworthy that the bullish price of Bitcoin also pushed the price of Ethereum higher, with its rise above $30,000.
Current ETH Withdrawal Statistics
According to the latest data from Etherscan, participants have withdrawn thousands of ETH worth millions of dollars. At that time, about 150,000 withdrawals of more than 270,000 ETH were recorded.
Token Unlocks revealed that most of the withdrawals were reward withdrawals, while main stake withdrawals were relatively low. Furthermore, it was noted that more than 111,000 ETH were deposited following the successful implementation of the Shanghai Hardfork.
In addition to the Etherscan data, Dune Analytics provided a comprehensive analysis of the betting market, according to which Lido continued to dominate the market with more than 5 million ETH staked, representing more than 30% of the market share.
Can the ETH Rate Double in 2023?
Ethereum’s course is in an uptrend after the successful Shanghai upgrade and Bitcoin’s uptrend. In recent weeks, the price of ETH has repeatedly lagged Bitcoin in percentage terms, with the major cryptocurrency outperforming altcoins.
The successful upgrade could drive the Ethereum price even higher than the Bitcoin price (percentage). However, a doubling should come soon this year, while a move toward $3,000 seems possible.
In the long term, the case for investing in Ether is in order, which will soon include the stake, the return on profits, and the freedom to withdraw when necessary. This is an important moment for the industry and another turning point in the debate between proof-of-stake and proof-of-work protocols.
By Audy Castaneda
