• The Ethereum price has been falling since hitting its ATH in November 2021.
• The upcoming Shanghai upgrade will enable withdrawals of 17 million staked ethers from the Ethereum (ETH) ecosystem.
• Analysts believe that new stakers could cancel out selling pressure, although some traders think ETH will experience further selling pressure post-Shanghai upgrade.
Ethereum Price Overview
The Ethereum price has been falling since hitting its all-time-high (ATH) around $4,800 in November 2021. Up over 30 percent year-to-date (YTD), the Ethereum price is retesting the upper bound of a falling trend.
The upcoming Shanghai upgrade to the Ethereum (ETH) ecosystem will make over 17 million staked ethers withdrawable. This follows news from the United States Securities and Exchange Commission indicating that cryptocurrency staking programs are unregistered securities.
Analysis & Speculation
According to Nick Hotz, vice president of research at digital asset investment firm Arca, net outflows could be cancelled out by new stakers, thus reducing overall selling pressure. With more coins being staked every day and an annual percentage rate of about 5.2%, analysts believe more coins will be staked after the Shanghai upgrade.
Impact on ETH Price
Speculation on the next Ethereum move is expected to increase volatility as the Shanghai upgrade nears. While some crypto traders anticipate increased sell pressure with ETH following the upgrade, others think otherwise due to factors such as investor comprehension time and queueing for withdrawals which may reduce immediate impact on ETH price action according to John „Omakase“ Lo from Recharge Capital and Rich Falk-Wallace from Arcana respectively.
With analysis indicating both positive and negative impacts on Etheruem’s price post Shanghai Upgrade, it remains uncertain what narrative the market creates about its long term outlook based on short term behaviour when withdrawals become available after this significant milestone for Ethereum’s growth and development within cryptocurrencies industry.