Ethereum price is down 2.5% over the past 24-hours to $1,872 as the market awaits the full rollout of the long-awaited Shanghai upgrade today.
The Shanghai staking will enable withdrawals of ETH, with many investors expecting an increase in selling with the update, resulting in further losses for the altcoin.
Although the daily limit on withdrawals will prevent any sales from being particularly large or occurring all at once, the update itself is a huge boost for Ethereum as it begins its transition to a proof-of-stake consensus mechanism. fulfills effectively.
Therefore, expect ETH to continue rising in the medium to long term, especially as more investors acquire altcoins for staking purposes.
Ethereum Price Prediction 24-Hour Countdown Begins as Shanghai Upgrades – What Happens Next?
Despite today’s drop, ETH is up 18% over the past 30 days and 56% since the beginning of the year.
And even with its modest correction, its indicators continue to signal positive buying momentum, which could continue with a successful rollout of the Shepela (Shanghai) upgrade.
Indeed, its 30-day moving average (red) continues to climb above its 200-day (blue), showing no signs of slowing down or turning down just yet.
Similarly, its Relative Strength Index (purple) hovers around the 60 mark, a position from where it could rise above 70 upon its Shanghai deployment.
Of course, some are suggesting that Shanghai could trigger an ETH selloff, given that it effectively unlocks around 16.3 million ETH (worth about $30.5 billion).
However, it is completely impossible to launch this entire ETH into the market at once.
This is because the developers have designed the staking process of Ethereum in such a way that how many full withdrawals can be processed in a day.
this limit currently set to 1,575 full withdrawals per day, given that Total Active Validator Number is between 458,752 and 524,288.
To put it differently, with 512,000 active validators and a limit of 1,575 full withdrawals per day, it would take approximately 325 days for all staked ETH to become unstaked.
On top of this, around 50% of the stakeholders are sitting on losses, which means they may wait for more gains before unstaking and offloading their holdings.
This arguably makes Shanghai a huge win for Ethereum overall, with some analysts suggesting that it should spur continued growth in ETH staking.
For example, JP Morgan analyst Nikolaos Panigirtzoglu published a research note in February In which it was predicted that after the completion of Shanghai, the staking ratio of Ethereum will increase to 60%.
This would equate to a major reduction in the circulating supply of ETH, and coupled with the fact that ETH has become a semi-deflationary coin since the merge and EIP 1559, the market could see a steady increase in the price of the altcoin.
So ETH could cross $2,000 in the weeks following the completion of Shanghai today, while it could even rise to $3,000 by the middle of the year.
And in the event of another bull market (likely to come next year), ETH could easily break its current high of $4,878.
New Altcoins Could Compensate ETH’s Losses
While there remains a real possibility that ETH could slide further in the coming days as stackers exit their coins, traders and investors have the option of recouping any potential losses and taking profits elsewhere. Is.
One of the most promising new altcoins in the market love hate inuAn Ethereum-based voting platform that launched sales for its native LHINU token about three weeks ago.
As of writing, the sale has raised $3.5 million, which is a pretty impressive figure for a new platform like this.
Due to launch later this year, Love Hate Innu’s decentralized polling platform will enable users to earn rewards (in LHINU) for participating in online surveys and such.
Its polls will cover a wide variety of topics, events and issues, with Love Hate Innu planning to tap into the most controversial and trending news stories to give its community their opinion on matters that matter.
On top of this, Love Hate Inu also aims to sign a variety of partnership deals with recognized brands, something that will enable its platform to offer exclusive branded rewards and opportunities.
Investors Can Participate In LHINU Pre-Sale Official Love Hate Innu WebsiteWhere they can use USDT, ETH or fiat currency to buy their LHINU.
With the sale currently in its fourth phase, the price for 1 LHINU token is $0.000105, though it will rise to $0.0000115 when the fifth phase begins in three days.
The price will eventually rise to $0.0000145 by the time the sale ends, meaning those who invest now will be sitting on a 38% gain.
And it is also listed on exchanges before LHINU.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
