Ethereum is preparing for its next major update on April 12th
“Ethereum” is preparing for its next major update called “Shanghai Upgrade”, scheduled for April 12, and the upgrade is very important and users will be able to withdraw tens of billions of dollars from “Ethereum” deposits, a procedure that was not previously available on world level.
And the “Investopedia” website concerned with investment affairs published a detailed report on the Shanghai upgrade, and the writer, Raoul Nmbimburath, stated that users interested in becoming validators on the Ethereum network were receiving a certain amount of Ethereum as a kind of reward for depositing the cryptocurrency to support the network and validate transactions.
According to the announced figures, there are more than 17 million Ethereum units (worth about $36 billion at today’s price) stored and their owners can only retrieve them after the next update.
Explaining the Shanghai Ethereum Upgrade
The Shanghai Upgrade will bring several improvements to the blockchain network. Among the most important of them are lower fees further and faster and safer transactions.
Nembempurath confirmed that some analysts and traders have expressed serious concern that Ethereum might be exposed to some short-term selling pressure following the announcement of the completion of a series of fundamental updates to the Ethereum blockchain.
He noted that the majority of analysts consider this development to be very positive for the Ethereum blockchain in the long run, as the withdrawals of the pledged coins are supposed to become more flexible, which will attract many Ethereum holders to mortgage their shares of it.
And the writer confirms that it is not clear how many users will want to withdraw funds once their “Ethereum” is unblocked.
At least initially, demand for withdrawals is expected to outpace new deposits in Ethereum.
In the long run, having the opportunity to withdraw pledged Ethereum would likely make it more attractive as it would reduce the risk for participants.
The writer indicated that there is a general feeling among investors that even if the Ethereum currency is subject to some price declines following the recent update, many expect that the negative impact of this will be short-term and unsustainable.
influence on the price
Regarding the impact of the upcoming Shanghai upgrade on the price of Ethereum in particular and the prices of cryptocurrencies in general, Coindesk published a report by Christian Sanders, stating that after Ethereum reached its highest price levels in just under 8 months last Wednesday around the $1950 region.
The price of the Ethereum currency witnessed a slight decline, as it was traded – at the time of writing the report – around the $ 1850 region.
The writer confirms that the value of the Ethereum currency carries positive possibilities in the medium to long term, but betting on the return of the runner-up of the highest ranked digital currency in terms of total market value to its highest levels ever recorded this year is something completely different.
This requires the price of Ethereum to rise by 160% compared to current price levels, which is very difficult.
But at the same time, the writer points out that in the past, the price of the Ethereum currency has already risen by more than 100%, from the lowest levels recorded during the past year at the $800 level.
The value of the Ethereum currency had reached its highest peaks by a whopping 600%, between November 2020 and April 2021.
Therefore, the possibility of Ethereum achieving a 160% rise this year should not be ruled out, by any means.
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