SHANGHAI UPGRADE WIDELY BULLISH

The unlocks of the Shanghai upgrade are widely bullish even for Ethereum. Ethereum has successfully launched the Shanghai hard fork upgrade also known as Chappella. This is the first time in 28 months that the people who staked their ETH by December 2022 are finally going to be able to unstake their ETH if they want to do so. More importantly, they were also able to finally claim their staking rewards. They have been staking for a very long time, now they can finally cash out if they want or take those rewards and restake them. Many people have been saying this is going to lead sell-off for Ethereum, that everyone is going to unstake all of their ETH. But in reality, it has been a big fat nothing.

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Even if there is a short time sell-off as we see some more of that staked Ethereum getting unstake, it doesn't change the long-term picture of why this upgrade is very bullish for Ethereum. The two biggest concerns that people have had are that everyone is going to unstake and rush for the exit and the staking rewards are all going to get just massively dumped into the market and the price is going to collapse. All of those batches of 32 ETH that are currently running the network can now be unlocked. That exit queue and far from leading to a massive overnight dump. The price of Ethereum started trading above $2,000 this week for the first time in 8 months because it is a fundamentally bullish event. Of course, some validators are exiting which is normal and that is to be expected.

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Some far, Kraken exchange has led the exit queue accounting for 62% of all validator's withdrawals. That is largely expected because of the legal situation going on with the SEC. There is a lot of staking come coming, and there are indeed a lot of withdrawals happening but there is also a steady stream of new money coming in which is very bullish. Even if every validator wants to get out it will take a year to do that at the current exit limit. A lot of people simply aren't going to do that, they are in there for a long time. Those staking rewards will be unlocked over the next few days around a million ETH is eligible to be claimed from the total staking rewards that have accrued over the last two years. Although, maybe around half of that can be unlocked within the next few days. The good portion of that ETH may not be sold, may simply be claimed and then restaked to earn more ETH. Even if all 300 million dollars worth get dumped in the same second into the market on one exchange, that only going to be a little bit of negative price action for a few days.