- ETH is trading at $1,920.
- The Shapella upgrade, which will enable ETH staking withdrawals, is set to hit Ethereum mainnet on Wednesday.
- Stakers currently have a total net unrealized loss of $4.7 billion.
The Ethereum blockchain is set to undergo one of its largest upgrades in history. The Shapella upgrade – a portmanteau of the Shanghai and Capella upgrades – will enable ETH staking withdrawals for the first time since Ethereum went proof-of-stake last year.
Many fear that ETH will experience a substantial dump due to stakers unstaking their ETH and eventually selling. However, just a day before the big event, ETH is trading at levels not seen since August 2022, pointing to investors’ relative calmness about Shapella.
Ethereum Trades at $1,920 Ahead of ETH Staking Withdrawals
Ethereum’s native currency ETH has been enjoying a steady upward trend in the past week. ETH is currently trading at around $1,920, up 6% in the past seven days, according to data from CoinGecko.
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Ether’s market cap has climbed over $230 billion and currently stands at $230.7 billion, a level not seen since August 2022.
That’s despite the Shapella upgrade, which will enable ETH staking withdrawals, being set to go live on Wednesday at 22:27:35 UTC. Many believe that all of the more than 18 million ETH locked will be unlocked all at once, which will result in massive selling.
However, contrary to public belief, ETH staking withdrawals will be processed over time, not all at once. Stakers will be able to unstake only 43,200 of the original 16.27 million staked ether per day, which will lower the impact of potential selling.
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On top of that, according to Glassnode, stakers currently have a total net unrealized loss of $4.7 billion. The largest of depositors, those running over 500 validators, are experiencing the most financial pain, holding 70% of the unrealized losses.
This has led some to believe that those that are deeply underwater will refrain from selling their ETH and wait for the price to rebound to the 2021 levels.
On the Flipside
- No one really knows how ETH will react to the staking withdrawals. It’s also possible ETH will dump in the short term before rebounding after stakers exit their positions.
Why You Should Care
ETH staking withdrawals are one of the most important Ethereum upgrades in the blockchain’s history. Investors should consider hedging against a possible dump in ETH’s price.
Read more about ETH staking withdrawals:
Ethereum Staked ETH Withdrawals Coming Next Week: What It Means for You
Read more about zkSync’s solution to unlock millions worth of ETH:
zkSync Era Finds ‘Elegant’ Way to Unlock 921 ETH Stuck in Smart Contract
