Ethereum Gears Up For The Massive Shanghai Upgrade: Here’s What To Expect
The Ethereum market is eagerly preparing for a major network upgrade known as the Shanghai upgrade, which is set to take place in less than three weeks. The upgrade will allow for over 17.7 million ethers to be withdrawn after two years of being locked. Ethereum’s core developers have scheduled the Shanghai upgrade to take place on April 12, when stakers can start requesting withdrawals.
Short-Term Sell Pressure
While the Shanghai upgrade is expected to cause some selling pressure in the short term, many Ethereum investors are expected to continue staking in the future. Additionally, the upgrade will make staking and unstaking Ethereum coins easier.
Ethereum’s Growth and Price Analysis
As a leading smart contract network, Ethereum has seen significant growth since its ICO in 2014, when the token launched at $0.31. However, the Ethereum price has decreased by over 63% from its all-time high, set at around $4,878 in November 2021.
Ethereum’s price has gained approximately 46% year-to-date and was trading at around $1,752 on Monday. To continue this upward momentum, bulls must defend the $1,680 support level. The Ethereum price broke out of last year’s logarithmic downtrend in the second week of March and has since consolidated.
While there may be several rebounds on the logarithmic downtrend in the coming weeks, Ethereum bulls are eyeing $2,000 as the next hurdle to overcome. Moreover, cash flow from Bitcoin to Ethereum and its ERC-20 tokens is expected to increase in the coming weeks.
More Traction, Lower Fees For Ethereum!
According to research data provided by Glassnode, the number of Ethereum addresses holding more than 0.01 in ether has exponentially increased since 2022.
Additionally, the cost of transferring ether has significantly decreased since the London fork, code-named EIP-1559, in 2021, introduced the base fee. Previously, Ethereum network users faced extremely high transaction fees, making small holdings practically impossible.