Ethereum Shanghai Upgrade News: The highly anticipated network upgrade will go live sometime in March or April. It allows ETH stakers to withdraw their cryptocurrency currently locked into the ETH 2.0 smart contract. But the question is, will unlocking this amount create massive selling pressure?
A dress rehearsal (Zhejiang testnet) for the Ethereum Shanghai upgrade is about to begin. It replaces the Shandong testnet, as it included several EIPs at launch that will not be rolled out with the upgrade.
According to Paritosh, developer at the Ethereum Foundation, the Zhejiang testnet is a great opportunity for all tools to test how they want to collect, display and use the withdrawal information. Keeping the user experience running smoothly is now one of our top priorities!
How will the Ethereum Shanghai upgrade affect the price of ETH?
At the time of writing, the current price of Ethereum is $1,667.61 with a one-day trading volume of $9,876,481,170. ETH is up nearly 5.51% in the past 24 hours. The coin holds a strong second position on CMC, with a live market cap of $204,071,388,357.
Source – CoinMarketCap
The implementation of the network upgrade in Shanghai is expected to increase Ethereum’s stake ratio, allowing stakers to enjoy additional returns without the downside of lower liquidity. From reduced gas costs to fewer failed trades, ETH is expected to rise during the network upgrade.
On the bearish side, the cryptocurrency market is still on the verge of a bullish-bearish trend. There are many reasons for this, such as many investors are not yet done with the Terra Luna and FTX contagion. Also, macroeconomic factors are bearish which may pressure the original Ethereum strikers to sell their staked ETH.
In conclusion, Shanghai Network Upgrade can lead Ethereum to a huge surge, or investors can witness the price drop. It’s only a matter of time until we find out!
Also Read: How Will Ethereum Shanghai Upgrade Affect ETH Holders?
Note: The information in this article is solely the opinion of the author and not investment advice – it is for educational purposes only.
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