Where Is Ethereum Headed Following Its Shapella Upgrade? – InvestorPlace
Ethereum(ETH-USD) is one of the best-known cryptocurrencies out there. The worlds second-largest token, this project provides the infrastructure and plumbing for a significant portion of the decentralized finance (DeFi) ecosystem. Indeed, via pioneering smart contracts within blockchain technology, Ethereum has ushered in a whole new world of utility-creating applications in the blockchain space.
A recent so-calledShapella upgrade(which is actually a combination of two upgrades, Shanghai and Capella) could provide even more utility to the Ethereum network.
How?
Well, the Shanghai upgrade allows for staked Ethereum to be withdrawn from Ethereums beacon chain. Accordingly, for those staking on the Ethereum network (via last years Merge upgrade), investors will now have the ability to withdraw their Ether from the network. This could create a more robust demand for staking over time.
The Capella upgrade will provide improvements to Ethereums consensus mechanism and further improve the network overall.
Lets dive into what this all means.
The implementation of the Shapella hard fork, also referred to as the Shanghai upgrade, took place on April 12. As mentioned, this upgrade significantly reduced the risks of staking Ethereum by permitting the withdrawal of locked coins whenever desired. The significant milestone has stimulated institutional interest in Ethereum, the second-largest cryptocurrency by market capitalization.
The recent increase in open interest and rise in the price of Ether indicates a surge of new investments in the market, further confirming the cryptocurrencys upward trend. According to CoinDesk data, Ethers price has increased by 8% after implementing the Shapella hard fork. Additionally, the spread between futures and spot market prices, known as the basis of the end, has increased, doubling the three-month premium to over 4%. The widening base and the rise in open interest suggest investors have taken a bullish approach to cryptocurrency.
While investor optimism appears to have dwindled of late (as it did with the Merge), its clear this upgrade is a big deal for the community over the long-term.
The Shapella upgrade is a combination of changes to the Shanghai Ethereum Virtual Machine and the Capella consensus layer, as well as modifications to the Engine API that links these two layers. Following successful transitions in Sepolia and Goerli, client teams have planned to activate the Shapella upgrade on the mainnet.
The Shapella Upgrade, a hard fork, incorporates EIP-4895, which codifies the new unstaking policy into Ethereum. Since the release of the Beacon Chain in December 2020 (before being merged with the old PoW chain), validators have been able to stake ETH. Withdrawals on the Zhejiang testnet were enabled on 7 February 2023.
The primary concern was whether the upgrade would result in a buy the news or sell the news situation, even though the news was somewhat predictable. According to Glassnodes on-chain analysis, a maximum of 170K ETH may be sold, but this is the highest possible estimate.
The recent upgrade allows validators to withdraw their staking rewards partially or fully. Validators can remove all of their staked ETH or just the accumulated dividends. However, most validators with a 32 ETH commitment are anticipated to continue to support the network by staking.
The Ethereum network has a pre-planned roadmap for its future, and the next major upgrade will be sharding. The upgrade is expected to be a significant turning point for the network, as it aims to reduce gas fees to a considerable extent.
Stabilizing gas fees on Ethereum is expected to impact the networks long-term growth positively. However, it is uncertain how the market will react to the news that ETH can now be withdrawn.
Following the implementation of the Shapella upgrade, Ethereums value has slightly increased. At the time of writing, ETH was trading at $1,920, up 2.9% for the day. Additionally, the asset is almost at its highest point in eight months, which it reached earlier this week.
If Bitcoin (BTC-USD) fails to break its resistance level of $30,000, Ethereums price may also decrease. The cryptocurrency market is expected to experience a correction soon after sustained gains in the past month.
On the date of publication, Chris MacDonald has a position in ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonalds love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
Visit link:
Where Is Ethereum Headed Following Its Shapella Upgrade? - InvestorPlace
- What is the 'Founder-Driven Growth' Ethereum has Its Eye On? - Finance Magnates - April 3rd, 2025 [April 3rd, 2025]
- Ethereum (ETH) Price Prediction & Analysis: Battle at $1,800 Recovery or Deeper Correction Ahead? - CoinCentral - April 3rd, 2025 [April 3rd, 2025]
- Reputable Trader Says Ethereum (ETH) Will Rally to $3300.75 and Ripple (XRP) Will Retake $3.84, Can This $0.20 Coin Follow Them? - The Crypto Update - April 3rd, 2025 [April 3rd, 2025]
- Correlation Between Ethereum and Gold Indicates Market Signals - Blockchain News - April 3rd, 2025 [April 3rd, 2025]
- Best Crypto to Invest in 2025: Arctic Pablo Coin, Ethereum, and Polkadot Compared - The Crypto Update - April 3rd, 2025 [April 3rd, 2025]
- Bitcoin, Ethereum, XRP Price Analysis Ahead of Trump Tariffs - FXEmpire - April 3rd, 2025 [April 3rd, 2025]
- Ethereum ETF Daily Flow Reports Zero Movement for Grayscale Mini (ETH) - Blockchain News - April 3rd, 2025 [April 3rd, 2025]
- Could Longing Ethereum (ETH), Buying Big In Remittix & Shorting Cardano (ADA) Be The Best Trades Right Now? Analysts Tell Us The Tips - TronWeekly - April 3rd, 2025 [April 3rd, 2025]
- Grayscale Files to Convert Bitcoin, Ethereum, and XRP Large Cap Fund Into an ETF - Decrypt - April 3rd, 2025 [April 3rd, 2025]
- Is Ethereum Doomsday Coming Soon in 2025? - Binance - April 3rd, 2025 [April 3rd, 2025]
- Ethereum Price Prediction 2025: Can ETH Recover or Will It Crash Further? - Binance - April 3rd, 2025 [April 3rd, 2025]
- Bitcoin, Ethereum, XRP Down Since The Start Of 2025: Would A President Harris Have Been Better For Crypto? - Benzinga - April 3rd, 2025 [April 3rd, 2025]
- Ethereum Sees Institutional Growth Amid Resurgence in Demand - The Coin Republic - April 3rd, 2025 [April 3rd, 2025]
- Five Crypto Assets to Hold in 2025 to Make You Rich; Remittix, Ripple, Ethereum, Cardano & Solana - TronWeekly - April 3rd, 2025 [April 3rd, 2025]
- Fidelity opens the doors to the future of retirement: Bitcoin, Ethereum, and Litecoin in retirement accounts - The Cryptonomist - April 3rd, 2025 [April 3rd, 2025]
- Has Mutuum Finance (MUTM) Arrived Just In Time As Solana (SOL) Nears Price Exhaustion & Ethereum (ETH) Pullback Continues? - The Crypto Update - April 3rd, 2025 [April 3rd, 2025]
- ETHEREUM at Major Support: Bullish Rally Incoming? for COINBASE:ETHUSD by DanieIM - TradingView - April 3rd, 2025 [April 3rd, 2025]
- Analyst Warns of Massive Ethereum Drop Against Bitcoin - Cryptodnes.bg - April 3rd, 2025 [April 3rd, 2025]
- News Explorer Irish Man Claims He Was Paid in Ethereum to Snoop on Rival Tech Firm - Decrypt - April 3rd, 2025 [April 3rd, 2025]
- Ethereum prints 4 consecutive red monthly candles, but data points to an ETH/BTC bottom - Cointelegraph - April 3rd, 2025 [April 3rd, 2025]
- Revealed: Why Cardano (ADA) & Ethereum (ETH) Whales Are Putting So Much Into New Tech Remittix (RTX) As Presale Goes Live - TronWeekly - April 3rd, 2025 [April 3rd, 2025]
- Ethereum 'Pectra Upgrade' Confirmed for the 7th of Next Month - Bloomingbit - April 3rd, 2025 [April 3rd, 2025]
- Ethereum futures premium hits 1+ year low Is it time to buy the ETH bottom? - Cointelegraph - April 3rd, 2025 [April 3rd, 2025]
- Hedera & Ethereum Selling Pressure Creates Deeper Scope For New Defi Crypto Coldware, 90% Price Incease On The Table? - MoneyCheck - April 3rd, 2025 [April 3rd, 2025]
- Bitcoin, Ethereum, XRP, Dogecoin Dump On Tariff News - Benzinga - April 3rd, 2025 [April 3rd, 2025]
- Ethereum Is 'Completely Dead' As An Investment: Hedge Fund - Bitcoinist.com - April 3rd, 2025 [April 3rd, 2025]
- Ethereum May Have To Undo This Death Cross For Bull's Return - Bitcoinist.com - April 3rd, 2025 [April 3rd, 2025]
- Privacy Pools launch on Ethereum, with Vitalik demoing the feature - Cointelegraph - April 3rd, 2025 [April 3rd, 2025]
- Ethereum's Price Dips, But Investors Seize The Opportunity To Stack Up More ETH | Bitcoinist.com - Bitcoinist.com - April 3rd, 2025 [April 3rd, 2025]
- Why People Are Buying Remittix (RTX) Instead Of Longing Ethereum (ETH) Or Backing Pepe (PEPE) Comeback - Blockchain Magazine - April 3rd, 2025 [April 3rd, 2025]
- Three Ethereum-Based Altcoins on the Rise Following Coinbase Announcement - The Daily Hodl - March 28th, 2025 [March 28th, 2025]
- Binance to Delist Ethereum (ETH) Effective March 28, 2025, at 14:30 UTC - "The Defiant" - The Defiant - DeFi News - March 28th, 2025 [March 28th, 2025]
- Ethereum edges closer to deploying Pectra on mainnet with successful upgrade on Hoodi testnet - The Block - March 28th, 2025 [March 28th, 2025]
- Coinbases Ethereum staking dominance risks overcentralization: Execs - Cointelegraph - March 28th, 2025 [March 28th, 2025]
- If XRP Ruled Like Ethereum, How Much Would 1 Coin Cost? - Binance - March 28th, 2025 [March 28th, 2025]
- XRP Price Forecast: Will It Outshine Bitcoin & Ethereum in 2025? - Coinpedia Fintech News - March 28th, 2025 [March 28th, 2025]
- Over $14B in Bitcoin and Ethereum Options Expire Today: Details - The Crypto Basic - March 28th, 2025 [March 28th, 2025]
- Ethereum Crashes 74% Against Bitcoin; Is Reversal Imminent? - U.Today - March 28th, 2025 [March 28th, 2025]
- US Government Moves Millions in Bitcoin and Ethereum Amid Strategic Crypto Activity - TOKENPOST - March 28th, 2025 [March 28th, 2025]
- Quarterly Options Expiry Puts Bitcoin and Ethereum to the Test with Over $14 Billion at Stake - BeInCrypto - March 28th, 2025 [March 28th, 2025]
- Sudden sharp drop for the price of Ethereum: what is happening to ETH? - The Cryptonomist - March 28th, 2025 [March 28th, 2025]
- Solana vs. Bitcoin vs. Ethereum: How Do They Compare? - CME Group - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Prediction: ETH To Finally Break Its ATHs This Year - Bullish Sign For GameFi Presale? - TronWeekly - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Prediction: Despite Drop Experts Bullish On ETH To Blast Past $5,000 By End Of June - CoinCentral - March 28th, 2025 [March 28th, 2025]
- Ethereum, Bitcoin Ratio Plunges to May 2020 Lows And There Are More Losses Ahead - FX Empire - March 28th, 2025 [March 28th, 2025]
- Crypto Trader Says Ethereum Rival Offering Opportunity at Current Levels But Theres a Catch - The Daily Hodl - March 28th, 2025 [March 28th, 2025]
- Bitcoin, Ethereum to end Q1 in the red, vertical swing up unlikely - Cointelegraph - March 28th, 2025 [March 28th, 2025]
- Ethereum Falls More Than 6% In 24 hours - Benzinga - March 28th, 2025 [March 28th, 2025]
- US Government Moves 97.3 Bitcoin Worth $8.46M and 884.3 Ethereum from Reserve - The Crypto Basic - March 28th, 2025 [March 28th, 2025]
- Aave integrates Chainlink SVR on Ethereum to recover the OEV and increase the protocols revenues - The Cryptonomist - March 28th, 2025 [March 28th, 2025]
- Aave Integrates Chainlink SVR on Ethereum Mainnet - Bankless Times - March 28th, 2025 [March 28th, 2025]
- Ethereum (ETH) Price Charts Are Grim: Can It Bounce Back? - CryptoDaily - March 28th, 2025 [March 28th, 2025]
- Shiba Inu Attracts More Diamond Hands Than Bitcoin, Ethereum But Is High Whale Concentration Something To Lose Sleep Over? - Benzinga - March 28th, 2025 [March 28th, 2025]
- News Explorer Ethereum Game 'The Sandbox' Launching Next Season on March 31 - Decrypt - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Could Rally To $3,500 If The Pectra Upgrade Is A Success, But Will It Bestow Bigger Than Cardano & Remittix This April - TronWeekly - March 28th, 2025 [March 28th, 2025]
- Aave Integrates Chainlink SVR on Ethereum Mainnet to Recapture Liquidation MEV and Increase Protocol Revenue - WV News - March 28th, 2025 [March 28th, 2025]
- Ethereum Whales Shift Millions To Exchange - Is A Huge Dump Incoming? Many Are Diverting To Rollblock For Safety - MSN - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Prediction: ETH Still On Track To Hit $10K Before End Of The Year; RBLK Destined For Success - CryptoDaily - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Prediction: Where to Next for ETH, $1,000 or $3,000? Top Holders Are Making This Move - MoneyCheck - March 28th, 2025 [March 28th, 2025]
- Quarterly Options Expiry Puts Bitcoin and Ethereum to the Test with Over $14 Billion at Stake - Mitrade - March 28th, 2025 [March 28th, 2025]
- Can Ethereum Price Overcome ETF Outflows and Rally Toward $3,000 Soon? - The Market Periodical - March 28th, 2025 [March 28th, 2025]
- Ethereum ETFs May Lag Behind As One Utility Altcoin Gains Momentum With 7,900% Prediction - CoinCentral - March 28th, 2025 [March 28th, 2025]
- Fidelity files for OnChain share class of its US Treasury fund on Ethereum - Cointelegraph - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Prediction: ETH Tipped To Hit $10K - Here's When, Whales Position In Ethereum-Based Tokens - CryptoDaily - March 28th, 2025 [March 28th, 2025]
- Trader Says Ethereum-Based Altcoin Primed for 240%+ Rally if Major Resistance Level Breaks, Updates XRP Outlook - The Daily Hodl - March 28th, 2025 [March 28th, 2025]
- Buyers Favor Bitcoin ETFs Over Ethereum as Flows Shift - etf.com - March 28th, 2025 [March 28th, 2025]
- Custodia, Vantage launch first US bank-issued stablecoin called Avit on Ethereum - CryptoSlate - March 28th, 2025 [March 28th, 2025]
- Shiba Inu Price Prediction: Ethereum TVL Drops $14B Leading To Massive SHIB Decline - But There Is A Shining Light - CryptoDaily - March 28th, 2025 [March 28th, 2025]
- Significant Inflows to Bitcoin ETFs and Outflows from Ethereum ETFs - Blockchain.News - March 28th, 2025 [March 28th, 2025]
- Tired Of Poor Performance On The S & P500? Put $1,000 Into Cardano, Remttix & Ethereum And Watch Your Money 10x In Two Years - TronWeekly - March 28th, 2025 [March 28th, 2025]
- Cosmos devs test IBC protocol between Hub and Ethereum to boost interoperability - The Block - March 28th, 2025 [March 28th, 2025]
- The Daily: US Senate votes to repeal controversial crypto tax rule, Ethereum edges closer to deploying Pectra and more - The Block - March 28th, 2025 [March 28th, 2025]
- Custodia, Vantage release first bank-issued stablecoin on Ethereum - American Banker - March 28th, 2025 [March 28th, 2025]
- Is Ethereum on track to surpass Bitcoin? - Proactive Investors USA - March 28th, 2025 [March 28th, 2025]
- Milk Road's Speculative Tweet on Ethereum Price Projection - Blockchain.News - March 28th, 2025 [March 28th, 2025]
- Ethereum Price Risks Closing Below 3M Bollinger Bands, Expert Says Think Longer Term | Bitcoinist.com - Bitcoinist - March 28th, 2025 [March 28th, 2025]
- Celo developers finalize Ethereum Layer 2 transition, nearly two years after initial proposal - The Block - March 28th, 2025 [March 28th, 2025]
- Massive Rallies Now on the Table for Bitcoin and Ethereum, According to Arthur Hayes Here Are His Targets - The Daily Hodl - March 28th, 2025 [March 28th, 2025]
- Shiba Inu (SHIB): Bulls in Control Now? Bitcoin (BTC) in Great Spot, Ethereum (ETH): Major Bearish Signal, But There's Silver Lining - U.Today - March 28th, 2025 [March 28th, 2025]
- Ethereum and Mutuum Finance Poised for Significant Growth by 2026 - FX Leaders - March 28th, 2025 [March 28th, 2025]