The highly anticipated Shanghai upgrade of Ethereum, which had been eagerly awaited for a long time, was finally deployed in April 2023. Surprisingly, after one month since this momentous event took place, the price of ETH has not experienced any significant changes.
At the time of writing, Ethereum is trading around $1,855, which is nearly the same level it was at just before the upgrade process occurred. This stability in price can be attributed to the fact that the unstaking tokens of validators had been locked prior to Ethereum’s transition to proof of stake last year. This ensured a concentration of ETH holdings among various organizations.
Image: Coinmarketcap
It is worth noting that the current market situation suggests that the majority of potential sellers who might engage in a sell-off at this point are small retail investors. These individual investors may be more likely to capitalize on the relatively stable price and liquidate their holdings for short-term gains.
On the other hand, larger organizations and institutional investors, who hold substantial amounts of ETH, are not expected to be significantly affected by this upgrade. These entities typically have a long-term investment strategy and are more focused on the overall growth and potential of Ethereum rather than short-term price fluctuations.
The successful implementation of the Shanghai upgrade is a significant milestone for Ethereum. It ensures the safety and performance of the Ethereum network, providing a solid foundation for its long-term growth. While the immediate impact on ETH price may not be dramatic, this upgrade sets the stage for further advancements and developments in the Ethereum ecosystem.
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