How will the Shanghai upgrade impact ETH price? Expert explains APRIL 12th Key Date to watch for
While it may cause downside pressure in the short run, the Shanghai upgrade will be highly bullish for Ether’s price in the mid-to-long term, according to Vivek Raman.
The Shanghai upgrade, scheduled for April 12, will allow network validators to withdraw funds that have been locked to secure the network since December 2020. The upgrade will complete the network’s transition to a proof-of-stake system, which started in October 2022 with the Merge.
Around 18 million ETH will be available for withdrawal following Shanghai. According to Raman, that may lead to some selling pressure on ETH’s price in the short term.
However, in the long run, the ability to unstake Ether will “de-risk the ETH investment in a tremendous way,” he pointed out. In particular, institutional investors that couldn’t get involved earlier in staking will feel more comfortable once ETH can be unstaked. More capital entering ETH staking will improve the Ethereum network in the long run.
“The more native proof-of-stake asset that’s staked, the higher the cost to attack the chain,” Raman pointed out.
April 12th is very crucial date for ETH, Expecting lot of fluctuation of the price, I am planning to put some Limit orders at a Lower price, just to see if I can catch at the cheaper price. What is your strategy, Please OPEN, LIKE, COMMENT.
