Ethereum, the world’s second-largest cryptocurrency, has performed exceptionally well since December 2022. Also, bulls are holding onto the leading altcoin since Ethereum broke above the 50-day and 100-day moving average. Ethereum had even entered a short-term consolidation moving towards the $1.6K level before pulling back.
At the time of writing, Ethereum is changing hands at $1,576 after rising 1.13% in the last 24 hours.
Meanwhile, Ethereum’s Shanghai Update is one of the most anticipated updates in the crypto space. Prior to the announcement of this update, on September 15, 2022, the network was merged in which it switched from proof-of-work to proof-of-stake. During this time, there was a condition that a minimum of 32 ETH had to be staked and could not be withdrawn until the next update.
Ethereum Shanghai will allow the withdrawal of ETH staked
Now, with the Shanghai hard fork scheduled for March 2023, the Ethereum stakes can be withdrawn. However, the update is reportedly expected to push investors to dump the withdrawn ETH. If that happens, there will be a huge sale witnessed.
Rather, it all depends on how many validators are moving at any given time. Also, if a validator decides to move, they have to go through two stages, such as the exit queue and the withdrawal period. Therefore, there is very little chance that the Ethereum price will face a landfill.
Also, the exact situation can only be known once the hard fork is released and the withdrawal is active. This suggests that investors and traders will have to wait until the time comes and proceed very cautiously.
This post Mass Dump of ETH after Shanghai Update?
was published first on https://coinpedia.org/ethereum/massive-eth-dump-after-shanghai-upgrade-here-is-what-you-need-to-know/