Ethereum fans, get ready for the Shapella upgrade! Coming on April 12, 2023, the hard fork is set to revolutionize the way stakers and validators can withdraw assets from the Beacon Chain. Dubbed as one of the most exciting developments in Ethereum's history, the Shanghai upgrade is named after two of the proposed Ethereum Improvement Proposals: "Shanghai" and "Capella."
One of the most significant improvements in the Shapella upgrade is Ethereum Improvement Proposal-4895 or EIP-4895. This proposal allows validators to withdraw staked tokens, and given that staked Ether accounts for about 14% of the total supply of the token, this is massive news. Validators have been staking ETH since December 2020, and after the Merge, they were required to lock up their ETH and rewards until a later chain update. But now, after the Shanghai upgrade, validators can finally unlock all their staked ETH.
That's not all, folks! The Shapella upgrade includes several other Ethereum Improvement Proposals that aim to reduce gas costs for Ethereum developers and will address various gas-related concerns, ultimately benefiting developers.
For validators who want to unstake their ETH after the Shanghai fork, there are two options available. They can create a "withdrawal credential" to unstake their rewards, or they can exit the Beacon Chain completely by unstaking all 32 ETH.
While the Shanghai upgrade is relatively small compared to the Merge, it's still significant for those with staked ETH on the chain. There are more Ethereum upgrades expected to come later in 2023, including some aimed at improving the Ethereum Virtual Machine.
Technical Analysis of Ethereum
If you look closely at the Daily Chart of Ethereum on density exchange, it is currently trading in a tight consolidation range. What one also needs to note is that $BTC is also following a similar path. It's like two crypto siblings holding hands, walking down the same path.
Now, let's talk about the price action. After a significant dip to $1700, Ethereum bounced back up to $1900, but it failed to sustain its position above that price point. This indicates that the market is struggling to find its footing and may be looking for a new catalyst to trigger a breakout.
Enter the Shapella upgrade. This is where things get interesting. The $1800-1850 range is acting as an immediate demand zone, and all eyes are on how the price will react after the upgrade.
Could this be the trigger for the next Bull Rally? The anticipation is palpable, and only time will tell. As a crypto trader, you never know what to expect.😃
It's a thrilling rollercoaster ride of ups and downs, twists and turns, but one thing's for sure - the crypto market is always on the move. Keep your eyes peeled, folks, because you never know what the next big thing in crypto trading will be.📈