- Ethereum network developers are gearing up for a hard fork in Shanghai, with a target release date of March 2023.
- Upgrades include Ethereum Improvement Proposal EIP 4895, which allows withdrawal of staked Ether tokens.
- Ethereum price may collapse under selling pressure from unlocked tokens.
Ethereum, the second-largest altcoin by market cap, plans to unlock staked ETH tokens after its March 2023 Shanghai hard fork. The upgrade contains improvement suggestions that allow the user to unlock her ETH. Altcoins are likely to battle increased selling pressure from the event.
Ethereum Developers Gear Up For Shanghai Hard Fork
ethereum The developer is working on a “surge” after a successful merge. The Merge is the altcoin network’s transition from a proof-of-work to a proof-of-stake network, reducing energy consumption by he 99%. Developers are working to unlock Shanghai’s hard fork and staked tokens through Ethereum Improvement Proposal (EIP) 4895.
The surge was supposed to go live with the next upgrade of the second-largest cryptocurrency by market capitalization. The developer recently confirmed that “The Surge” EIP 4844, known as proto-dunk sharding, will be prioritized after unlocking stake tokens. “The Surge” was expected to increase the scalability of layer 2 scaling solutions by an order of magnitude and prepare the chain for sharding.
in the case of ethereum, sharding is the concept of dividing the large amount of data required for rollup across a complete blockchain network. It can help reduce network congestion and increase transactions per second.
In response to criticism of the lack of withdrawal functionality for staked Ethereum since December 2020, developers have prioritized EIP 4895 for the next upgrade of the Ethereum chain.
What to expect from Ethereum price after unlocking staked ETH
Ethereum price is token unlock event. It remains to be seen if it will be a “news event sale” and will be priced ahead of the Shanghai hard fork. We believe that the potential for investors to stake more Ethereum could soften the price impact of unlocking.
Guy was quoted as saying:
Now, I wouldn’t be at all surprised to see a selloff, even a little bearish in the short term. However, I think the future of ETH is very bright. If things go as smoothly as the merger, I think 2023 could be a very big year for Ethereum and his ETH.
Experts believe Ethereum could trade flat for most of 2023.