The long-awaited Shapella upgrade of Ethereum (ETH) has kicked in. After the implementation of this important development in the price of Ethereum (ETH), there was no serious movement.
Ethereum (ETH) Update Has No Impact on Price
With validators unlocking the tokens that have been locked since Ethereum transitioned to Proof-of-Stake last year, Ethereum is trading at around $1,914, where it was just before the upgrade took place. ETH is up 1.1% compared to 24 hours ago.
The first phase of Eth2, called Beacon Chain, was launched in December 2020 and introduced the Proof-of-Stake protocol.
Authenticators wishing to join the new system had to deposit at least 32 ETH in a smart contract and run a node connected to the Beacon Chain.
These tokens are locked until the next phase of Eth2 called Merge, which will merge the Beacon Chain with the existing Ethereum mainnet and end the proof-of-work period.
Analysts were split over potential price action on the way up; While many predicted that the new update would increase selling pressure, others thought it could become a psychological warfare where investors punish excessively intense shorts.
Brent Xu, CEO of the cross-chain decentralized finance (DeFi) protocol Umee, said that he does not expect a big drop for ETH or related LSTs in the near future.
“The momentum is very strong,” Xu remarked. “There are many institutions that currently hold ETH and LSTs.
However, there are also analysts who say that the effect of this latest update on the price will be seen in a few weeks.
It is not investment advice.
