– Ethereum price has been performing well since December 2022.
– The Shanghai hard fork scheduled for March 2023 will allow users to withdraw their staked Ethereums.
– There is a fear that investors may dump those withdrawn ETH, resulting in a massive sell off.
The world’s second largest cryptocurrency, Ethereum, has been performing exceptionally well over the past few months. Since December 2022, Ethereum has surpassed the 50 and 100-day moving average, and is currently trading at $1,576 after a surge of 1.13% over the last 24 hours.
The upcoming Shanghai upgrade is one of the most anticipated upgrades in the crypto space. This upgrade will switch the network from a proof-of-work to a proof-of-stake system. In order to participate in the upgrade, users must stake a minimum of 32 ETH, which cannot be withdrawn until the next upgrade.
However, with the Shanghai hard fork scheduled for March 2023, those staked Ethereums can be withdrawn. This has resulted in a fear that investors may dump those withdrawn ETH, resulting in a massive sell off. The amount of ETH dumped will depend on the number of validators moving out at a particular time.
To prepare for the Shanghai upgrade, Ethereum has already taken several steps to avoid a massive ETH dump. These steps include increasing the staking rewards and proposing a new anti-manipulation rule. The anti-manipulation rule requires validators to keep at least 5% of their stake in the protocol for a minimum of one month. This will help ensure that large-scale dumping does not occur after the Shanghai upgrade.
Furthermore, Ethereum developers are also working on a new governance model to help prevent a potential dump. This new governance model will enable validators to vote on proposals that affect the network, including decisions related to staking rewards, network upgrades, and other changes. This will give validators more control over the network and help keep the Ethereum ecosystem stable.
Overall, the Shanghai upgrade is an exciting event for the Ethereum community and could potentially lead to further growth and development. However, the fear of a massive ETH dump remains a concern, and Ethereum developers are taking steps to ensure the safety of the network. With the right precautions in place, the network should be able to weather any potential dump and continue to thrive.