Over 3,000 Validators To Withdraw After Ethereum Shanghai Upgrade

Samuel Edyme

2 years ago

3 mins read

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Ethereum (ETH) has been making headlines lately with its upcoming Shanghai upgrade, which promises to bring significant improvements to the network. One of the most anticipated changes is the ability to withdraw staked ETH, which has been a long-standing concern for many users and validators.

Now that the upgrade which will allow for the withdrawal of staked ETH is set to happen later today (April 12), a report from the market intelligence platform IntotheBlock shows only 0.6% of validators are interested in withdrawing their staked ETH.

According to the report, out of the 562,717 Ethereum validators, only a total of 3,614 opted for withdrawal as of April 10. While this figure is significantly lower than the total validators on the Ethereum network, the chart shows it could still impact the Ethereum price.

Run Down On Shanghai Upgrade

The Ethereum Shanghai upgrade, also known as Shapella, is a result of the network’s staking system which involves validators locking up a certain amount of ETH in order to participate in the consensus process and validate transactions on the Ethereum network.

In return for their efforts, validators are rewarded with additional ETH. However, until now, staked ETH has been locked up and unable to be withdrawn from the network, meaning that users who wanted to participate in staking had to make a long-term commitment to their investment.

The ability to withdraw staked ETH has been a much-requested feature for some time, and the upcoming Shanghai upgrade is set to finally make it a reality. With the Shanghai upgrade set to take place later today, users will now be able to withdraw their staked ETH, which is a significant development for the Ethereum 2.0 project.

Shanghai Launch Impact On Ethereum Price?

So far, there is no accurate answer to how the Ethereum price could react following the Shanghai launch as there are many factors at play in the cryptocurrency market. However, from a technical perspective, ETH could record a notable movement.

In the 1-day time frame, ETH price recently tapped into one of its major highs which indicates the asset might see a retracement. This means Ethereum could see a dip as the Shanghai upgrade commences showing the sell-off of validators that have since been eager to withdraw and take profit.

Ethereum (ETH) price chart on TradingView — Ethereum (ETH) price recently tapped into a marked major high on the 1-day chart. Source: ETH/USDT on TradingView.com

It is worth noting that the retracement or plummet from ETH might not last long as only a small amount of validators are looking to withdraw. In addition, on the price chart, ETH still has an external high just above the $2,000 region.

Before Ethereum could see a notable fall after the Shanghai launch, the asset must have climbed above the external high above the $2,000 zone. This is because traders triggering ubiquitous take profit orders on asset charts cause a plummet after external liquidity has been taken.

Overall, assuming a large number of users suddenly decide to withdraw their staked ETH at the same time, it could lead to a temporary oversupply of ETH on the market, which could put downward pressure on the price.

On the positive side, it is reasonable to assume that the ability to withdraw staked ETH could result in more users wanting to participate in staking to earn rewards for their efforts. This could increase the demand for ETH to stake in the first place and reduce the overall supply of ETH over time.

Featured image from Shutterstock, Chart from TradingView.com

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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